Major decentralized exchange (DEX), Uniswap, has found itself in a legal dispute with the Securities and Exchange Commission (SEC). The American regulator has submitted a so-called Wells Notice to Uniswap’s development team, according to CEO Hayden Adams.
A Wells Notice is an official communication from the SEC announcing possible legal action, in this case against the Uniswap development team. As a result of these developments, the value of Uniswap’s underlying currency, UNI, fell by more than 20%.
Strong price drop of UNI
The price of the UNI token has fallen sharply in recent days. On April 9, this popular altcoin was still trading at a price of $11.78, but the coin is currently worth only $9.08. This represents a drop of 23% in just three days.
Recently, the price of the Uniswap token even briefly fell below $9, but now seems to find solid support around this price line. This significant price drop is a clear signal that the market is reacting nervously to the SEC’s allegations against Uniswap.
Comparison with Ripple lawsuit
The SEC’s complaint against Uniswap seems to have a strong comparison with the lawsuit that the American authority has underway with Ripple, the developer behind the XRP network. The long-running case has put pressure on the price development of XRP for years.
The announcement of the charges against Uniswap immediately attracted the attention of the crypto community, often criticizing the SEC’s late response. The decentralized exchange has been around for six years and crypto enthusiasts are puzzled as to why the authority is only now willing to take legal action.
According to attorney Bill Morgan, the approach of the SEC in the case with Uniswap very similar to the lawsuit against Ripple, he shared on social media platform
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Source: https://newsbit.nl/sec-start-zaak-tegen-uniswap-wat-kunnen-we-verwachten/
