The post UNI Token Price Crashes: SEC Targets Uniswap Labs, Sparking Massive Sell-Off appeared first on Coinpedia Fintech News
Uniswap Labs, the creator of Uniswap decentralized exchange (DEX), received a Wells notice from the SEC, signaling potential legal action. UNI fell 10% from $11.21 to $10 after Uniswap disclosed receiving a Wells notice from the SEC. It’s now trading at $9.66, the lowest since late February. Despite the setback, Uniswap Labs vows to contest the allegations, emphasizing the decentralized nature of the Uniswap Protocol. Seems another regulatory storm is brewing for DeFi.
SEC Notice Rattles Market
News of the SEC’s investigation into Uniswap surfaced last summer, but the recent Wells notice has intensified concerns within the crypto community. However, Uniswap Labs received a Wells Notice from the US SEC today. In response to the news, Uniswap founder Hayden Adams said the fight will last for years and may go all the way to the Supreme Court. UNI has fallen 13.4% in 24 hours and is now trading at $9.69. This may affect the development of the entire DeFi industry.
Whales React Swiftly, Dumping Millions in UNI Tokens
Following the issuance of the Wells notice, the crypto market witnessed a flurry of activity as three prominent whales initiated significant sell-offs of UNI tokens. According to an X post by Lookonchain, these whales offloaded a total of 2.03 million UNI tokens, valued at approximately $20 million, causing a sharp decline in UNI’s price by approximately 17%.
Among the notable transactions highlighted by Lookonchain, two wallet addresses deposited 1.25 million UNI tokens, worth $11.7 million, received from Binance on March 3, 2023, within a short timeframe. Additionally, another wallet address 0x4A0B executed a sizable sell-off, disposing of 472,691 UNI tokens for $4.59 million in USDC, resulting in a substantial profit of $1.67 million for the seller, further contributing to the downward pressure on UNI’s price.
Uncertainty Grips UNI Market, What next?
The rapid sell-off by whales underscores the uncertainty in the UNI market amid regulatory scrutiny. Investors are advised to tread carefully as the situation unfolds, recognizing the impact of regulatory actions on cryptocurrency prices and investor sentiment.
