Crypto Price Crash: SOL, ADA, MATIC, SHIB Plummet 20% Overnight – What is Going On?

Cryptocurrencies from some of the top blockchains on the market have lost over 20% of their values overnight as the prominent financial services company, Robinhood, announced it would be delisting the Cardano (ADA), Polygon (MATIC) and Solana (SOL) cryptocurrencies from its platform on Friday.

“We regularly review the crypto we offer on Robinhood. Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET. No other coins are affected and your crypto is still safe on Robinhood,” the company said in a statement.

The news came as the cryptocurrencies were mentioned in recent US Securities and Exchange Commission (SEC) lawsuits filed on 5 and 6 June against the crypto exchanges Binance and Coinbase.

Binance’s native token BNB has since suffered a major blow, dipping by around 9.5% in the past 24 hours trading down to $236 as of 10 June 2023.

Investors worldwide are concerned that the SEC’s actions will have lasting impacts on the crypto markets.

While both lawsuits were quite different, the SEC is accusing both exchanges in securities law violations. Binance, as well as its CEO, Changpeng Zhao, and two other parties are facing 13 charges including defying regulators about the blockchain’s operations.

Meanwhile the SEC’s accusations targeting Coinbase are claiming that the exchange is operating as an unregistered broker, clearing agency and securities exchange.

In addition, blockchain data showed that whales related to the prominent exchange Robinhood have been quite active in recent hours, depositing 9.4 million MATIC tokens to a number of exchanges, tweets published by the crypto analytics platform Lookonchain noted.

Another whale related to #Robinhood, Jump Trading, and #Cumberland deposited 9.4M $MATIC to exchanges in the past 15 hours.

Seems like whales/institutions are dumping $MATIC!https://t.co/yqoxOYkwvw pic.twitter.com/OCTGrXs3Iz

— Lookonchain (@lookonchain) June 10, 2023

Moreover, the platform added that the crypto asset trading company Cumberland has been depositing vast amounts of MATIC tokens to the two exchanges targeted by the SEC. Thus far, Cumberland has deposited 9 million MATIC coins to Binance and 5 million to Coinbase.

According to CoinMarketCap, ADA is down by 18.5%, SOL has dropped by 22.7%, MATIC has fallen by 25.5% and SHIB has lost over 17% of its value reaching $0.00000658 at the time of writing.

On a broader scale, flagship cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are also caught in the ripple effect of this bear market. They’ve dipped by 3.48% and 5.55%, respectively over the last 24 hours, underscoring the widespread volatility in the digital asset space.