The US Securities and Exchange Commission (SEC) has served a, a leading decentralized exchange (DEX). This pre-enforcement notice, a precursor to potential legal action, triggered a plunge in Uniswap’s native token, UNI.
At the time of writing, UNI was trading at $9.37, , data from Coingecko shows. The crypto has also sustained a 15% loss in the last seven days.
The wallets offloaded a combined 1.25 million UNI, potentially profiting by $3.5 million if they sold at current market prices. These tokens, interestingly, originated from a Binance transfer in March 2023, hinting at a potential strategy of holding on the exchange until the regulatory clouds cleared.
Uniswap Whales Seek Safer Shores
The news of the SEC’s looming action acted as a fire alarm for Uniswap’s biggest investors. On-chain data analysts at Lookonchain reported significant market movements, with three large whales shedding a staggering 2.03 million UNI tokens – a cool $20 million vanishing from the Uniswap ecosystem within hours.
Another whale liquidated over 472,000 UNI for a quick $4.6 million USDC payout, netting a cool $1.67 million in profit. The fire sale wasn’t limited to these three giants – six other whale-sized wallets collectively moved 316,400 UNI tokens to Binance, valued at roughly $3.15 million. This mass exodus of heavyweight investors exacerbated the downward spiral of UNI’s price, leaving retail investors scrambling to assess the situation.UNI takes a dip in the last 24 hours. Source:
UNI takes a dip in the last 24 hours. Source: whitzardflow.eth was liquidated 107,010 ($1M) 1 hour ago. He bought 262,045 ($3M) from Mar 1 to Mar 13 at $11.42 and deposited it into , then borrowed $1.8M of stablecoins. Due to the decrease in price, he was liquidated 107,010 ($1M) to repay the debt and… — Lookonchain (@lookonchain)
Uniswap Founder Vows To Fight, DeFi Future Uncertain
Uniswap founder Hayden Adams reacted swiftly and fiercely to the SEC’s move. In a fiery statement posted on the X platform, Adams condemned the SEC’s approach, accusing them of prioritizing opaque, legacy financial systems over the interests of consumers.Today Labs received a Wells notice from the SEC. I’m not surprised. Just annoyed, disappointed, and ready to fight. I am confident that the products we offer are legal and that our work is on the right side of history. But it’s been clear for a while that rather than… — hayden.eth 🦄 (@haydenzadams)He emphasized the need to defend Uniswap and the broader DeFi industry, underscoring the potential of decentralized finance to revolutionize financial inclusion. The Wells Notice marks the beginning of what could be a long and arduous legal battle. Adams acknowledged the possibility of a years-long fight, highlighting the immense stakes involved. The outcome of this clash, he argued, could significantly impact the future trajectory of DeFi and the entire cryptocurrency landscape.
UNI market cap currently at $5.6 billion. Chart:
