Uniswap founder Hayden Adams announced on Wednesday that the SEC had sent a Wells notice to Uniswap Labs, requesting compliance with law enforcement.
Published: 11/04/2024
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Author: Leexim
Uniswap founder Hayden Adams announced on Wednesday that the SEC had sent a Wells notice to Uniswap Labs, requesting compliance with law enforcement.

The SEC has sent a Wells notice to Uniswap Labs, declaring their intention to enforce the law.
Hayden Adams, the founder of Uniswap, stated: “I’m not surprised. I just feel uncomfortable and disappointed, but we’re ready to face the challenge. I believe that the products we provide are legal and we are doing the right thing historically.”

Adams also expressed dissatisfaction with the SEC focusing on dealing with companies like Uniswap and Coinbase instead of addressing cases like FTX.
The SEC has been investigating Uniswap for a long time. According to the Wall Street Journal, since September 2021, the agency has initiated an investigation into the operations of Uniswap Labs, especially regarding the functioning of the exchange without the need for intermediaries.
Information about law enforcement actions against Uniswap comes amid the SEC’s increasing focus on controlling cryptocurrency activities, especially with major companies like Coinbase, Ripple, and Binance.
Related: TRON Foundation Asserts Strongly Against SEC Lawsuit
The Ethereum Foundation, a support organization for the Ethereum network, recently disclosed that they have been “voluntarily requested to participate in an investigation by government agencies,” but did not specify the status of that investigation. Some other cryptocurrency companies have also faced legal accountability related to their transactions with the Ethereum Foundation.

Marvin Ammori, Legal Director of Uniswap Labs, described the SEC’s warning about law enforcement as “another abuse of power” and deemed the Wells notice “regrettable, but not surprising.” He also emphasized that Uniswap’s products comply with U.S. law and seek cooperation with reasonable regulations for cryptocurrencies, rather than continuing the abuse of power. Uniswap Labs is prepared to fight against this abuse and believes they will prevail.$BTC $ETH $UNI #unicorn

Ugly Unicorn Crypto Fund I, a recently launched fund that focuses on decentralized finance (defi), has successfully raised $12.46 million, according to a filing with the Securities and Exchange Commission (SEC). The fund, co-founded by Bridger Pennington, secured capital from 52 investors, each contributing a minimum of $100,000.

Strategic Approach and Portfolio Allocation:

With a goal of raising up to $100 million, Ugly Unicorn Crypto Fund I adopts a combined defi strategy that primarily trades on lesser-known, or "ugly," unicorns that receive less media attention. The fund's investor report reveals that 40% of its portfolio is invested in high-yield coins, while 25% is allocated to both low and mid-yield coins. Additionally, 10% of the fund is reserved for more speculative investments known as "moon shots."

Performance Analysis:

Although the specific coins held by the fund are not disclosed, it has demonstrated resilience during bearish market conditions. While numerous tokens experienced significant declines, some up to 90%, Ugly Unicorn Crypto Fund I achieved a modest gain of 3.81% last year, outperforming both Bitcoin and the Nasdaq. However, this year the fund has generated a return of only 26%, compared to Bitcoin's doubling in value. These performance figures suggest that the fund may be relatively less risky but potentially lacks the same upside potential as investing in and holding Ethereum. #uglyunicorncrypto

Unique Strategies and Differentiation:

The fund places a strong emphasis on "mitigating downside risk" and implements a daily compounding strategy, which they claim leads to higher returns. As one of the early defi-focused funds, Ugly Unicorn stands out from others that primarily focus on well-established cryptocurrencies such as Aave or Uniswap. Additionally, the fund actively engages in yield farming on defi platforms, setting it apart from funds that predominantly buy and hold a mixture of tokens.

Limitations and Future Outlook:

Given its recent launch, the fund's track record is limited. Although it demonstrated positive performance during a challenging bear market, its ability to navigate a defi bull market remains to be seen. It is important to note that the defi sector has not experienced significant growth recently, except for some recent gains. Therefore, the true test of the fund's performance may come during a potential defi bull market. #unicorn #bulls #investing

In Summary:

Ugly Unicorn Crypto Fund I has made a promising start by successfully raising $12.46 million from 52 investors. With a defi-focused strategy that targets lesser-known unicorns, the fund aims to mitigate downside risk while actively engaging in yield farming. Although its performance during a bear market was positive, the fund's ability to navigate a defi bull market and its potential for higher returns are yet to be determined. As the defi sector evolves, the fund's performance will provide valuable insights into the efficacy of its unique approach. #uglyunicorn