Cardano Jumps 7% After Coinbase Fixes Withdrawal Bug

Cardano Jumps 7% After Coinbase Fixes Withdrawal Bug

Cardano (ADA) followed many layer 1 tokens and posted gains during the Asian trading hours on Thursday.

  • Cardano rose 7% soon after Coinbase restarted withdrawals on Wednesday. Traders started facing withdrawal issues last week.
  • Sentiments in Asia were further buoyed after Hong Kong’s central bank, Hong Kong Monetary Authority (HKMA), seemed to provide an open ear to crypto stakeholders in a new discussion paper.
  • Cardano 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 appeared to have an open mind to crypto as 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 China’s Bizantine Capital pointed to a continued correlation between a bullish stock market and rising crypto prices in a comment to CoinDesk.
  • Zheng said that this extends beyond layer 1 tokens to the bitcoin and ether markets, and says the fund is considering re-entering based on institutional buying volumes of those assets.

Read more: Cardano vs. Ethereum: Can Ada Solve Ether’s Problems?

Originally Posted on: https://www.coindesk.com/markets/2022/01/13/cardano-jumps-7-after-coinbase-fixes-withdrawal-bug/
By: Sam Reynolds

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