The value of Uniswap's UNI token fell by 16% to $9.37 following a Wells Notice from the SEC, signaling potential legal challenges for the decentralized exchange.
📉 Uniswap 'whales' have been rapidly offloading their UNI holdings, with Lookonchain reporting that three such investors have sold off 2.03 million UNI, causing a swift $20 million drop in Uniswap’s valuation.
🐋 Major UNI stakeholders are transferring assets to Binance; one unloaded 1.25 million UNI, and another exchanged 472,000 UNI for $4.6 million in USDC, turning a profit of $1.67 million. Further sales are contributing to the token's price decline.
💼 The account whitzardflow.eth had to liquidate 107,010 UNI ($1M) to cover a stablecoin debt after UNI’s price dropped.
🔒 Uniswap founder Hayden Adams expressed determination to fight the SEC's warning, affirming the legality of Uniswap's operations and his commitment to the DeFi sector.
⚖️ This standoff with the SEC suggests a looming lengthy legal dispute with far-reaching implications for DeFi's future, raising anxiety in the crypto market about the repercussions of regulatory scrutiny for DEXs and investment security.
