Cardano Jumps 7% After Coinbase Fixes Withdrawal Bug

Cardano’s rally was fueled by traders regaining confidence in the protocol, and the HKMA taking a more gentle approach to retail crypto.

AccessTimeIconJan 13, 2022 at 7:52 a.m. UTC
Updated Jan 13, 2022 at 3:12 p.m. UTC

Cardano's ADA followed the path of other tokens associated with layer 1 blockchains and posted gains during the Asian trading hours on Thursday.

  • ADA rose 7% soon after Coinbase restarted withdrawals on Wednesday. Traders started facing withdrawal issues last week.
  • Sentiment in Asia was further buoyed after Hong Kong’s central bank, the Hong Kong Monetary Authority (HKMA), seemed to provide an open ear to crypto stakeholders in a new discussion paper.
CoinDesk - Unknown

ADA moved upwards during the Asia trading session. (TradingView)

  • The token was trading at $1.30 by mid-day Hong Kong time, up 6% in the past 24 hours, according to CoinGecko.
  • Other layer 1 tokens, such as solana (SOL), also posted gains of up to 10% in the past 24 hours.
  • Layer 1 refers to individual blockchains, such as Ethereum or Solana, over which developers can build applications and services.
  • Reports of cardano traders facing difficulties withdrawing their tokens from Coinbase spooked the market last week, pushing cardano down to $1.11 from a late December high of $1.60.
  • Traders were also relieved that HKMA appears to have an open mind to crypto after its chief executive solicited stakeholder feedback to build a “risk-based, pragmatic and agile regulatory regime." Hong Kong’s regulators were seen as hostile to crypto in the past
  • March Zheng, a Shanghai-based partner at Bizantine Capital, pointed to a continued correlation between a bullish stock market and rising crypto prices in a comment to CoinDesk.
  • Zheng said this correlation extends beyond layer 1 tokens to the bitcoin and ether markets. He said his fund is considering re-entering based on institutional buying volumes of those assets.

Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Bitstamp Inactivity Fee Canceled After Customer Response

The crypto exchange had said it would be charging small, non-active accounts 10 euros per month.

CoinDesk - Unknown
2
CoinDesk - Unknown
Crypto News Roundup for July 6, 2022

With crypto markets trading in the green and a look at crypto job satisfaction just as the crypto winter began, CoinDesk’s “Markets Daily” is back with the latest news roundup.

CoinDesk - Unknown
3
CoinDesk - Unknown
Genesis Confirms Exposure to Three Arrows Capital

Digital Currency Group, the crypto conglomerate that owns Genesis, is assuming some of the liabilities.

CoinDesk - Unknown
4
CoinDesk - Unknown
Ethereum's Sepolia Testnet Successfully Switches to Proof-of-Stake

The Sepolia proof-of-work chain merged with its proof-of-stake chain on Wednesday, taking Ethereum one step closer to its own Merge moment.

CoinDesk - Unknown