Uniswap Token Tumbles as SEC Scrutiny Sparks Investor Exodus
SEC's notice to Uniswap spurs a 16% UNI price fall and whale sell-off
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.
