The price of Uniswap (UNI) coin had a significant decline of 16%, reaching $9.37, after the issuance of a Wells Notice by the US SEC. This notice indicates potential legal challenges for the decentralized exchange.
According to Lookonchain, three large holders of Uniswap, often referred to as ‘whales’, sold a total of 2.03 million UNI tokens, resulting in a significant decrease of $20 million in the overall value of Uniswap.
Prominent stakeholders in UNI are divesting their assets to Binance. One shareholder liquidated 1.25 million UNI tokens, while another exchanged 472,000 UNI tokens for $4.6 million worth of USDC, resulting in a profit of $1.67 million. The token’s price is decreasing due to declining sales.
The account with the username “whitzardflow.eth” sold 107,010 UNI tokens, equivalent to $1 million, in order to settle a debt denominated in stablecoins, since the price of UNI saw a sharp decline.
Hayden Adams, the creator of Uniswap, expressed his determination to challenge the warning from the SEC, asserting the legal compliance of his firm and its strong commitment to decentralized finance (DeFi).
The ongoing impasse with the SEC indicates a long and complex legal battle that will have significant consequences for the future of decentralized finance (DeFi), intensifying concerns within the crypto industry over regulatory oversight of decentralized exchanges (DEX) and the security of investors.
