Uniswap will vote on-chain on May 31. UNI may continue 40% gains despite SEC Wells warning.
On May 31, Uniswap will automate fee collecting and distribution via on-chain voting.
DeFi is proceeding despite the April 2024 SEC Wells Notice.
UNI might recover 40% to erase April losses.
Decentralized exchange platform governance token Uniswap (UNI). In April 2024, the project got a Wells Notice and answered in May. Despite the SEC's intervention, DeFi is proceeding with its on-chain vote to automate fee collecting and distribution.
Uniswap prepares for May 31 on-chain voting.
Uniswap reacted to the Wells Notice that authorities issued in May 2024 to report infarctions. Marvin Ammori, Chief Legal Officer of Uniswap Labs, stated that the initiative is in line with US law and that the SEC is pursuing assets and persons in countries “well beyond its authority.”
Ammori says over 75% of Uniswap's services are used outside the US and approximately 90% of DEX volume is traded outside the SEC's jurisdiction. Uniswap's CLO says DEX offered their opinions on SEC claims and will sue if necessary.
The protocol replied to the Wells Notice and will do on-chain voting on May 31. The vote will automate fee collection and distribution, although UNI holders must delegate their tokens before the vote.
The DEX thinks the new voting process will lower Uniswap Governance's workload while retaining DeFi's reputation.
Moving Average Convergence Divergence (MACD) supports the bullish thesis with green histogram bars above the neutral line and a crossing above the signal line on April 22.
The Relative Strength Index (RSI) is 73.02, indicating solid momentum in UNI's uptrend in the overbought zone over 70. RSI is overbought, thus traders should be careful when buying the item.
UNI might find support around $8.617, its May 23 low. The asset also has support from the 78.6% Fibonacci retracement of the March 6–April 13 fall at $8.28.
