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Uniswap, the largest decentralized exchange on Ethereum Blockchain experienced a price decline amid whales dumping $20 million worth of UNI.
On April 10, Uniswap, the decentralized cryptocurrency exchange (DEX) received a legal notice from the US Securities and Exchange Commission (SEC). The SEC claimed that the DEX is operating illegally as an unregistered exchange and broker-dealer. Result of this, whales dumped UNI coins worth $20 million which dropped the coin price.
Uniswap Vs SEC: The Legal Battle
Uniswap is one of the recent exchanges that received legal notice from the SEC for illegal operations. According to the SEC, Uniswap is functioning illegally as an unregistered exchange and broker-dealer.
On Wednesday, Uniswap received a Well notice from the SEC for operating illegally in the crypto industry. Hayden Adams, the founder of Uniswap took on the social media platform X to communicate the same to the crypto community.
Today @Uniswap Labs received a Wells notice from the SEC.
— hayden.eth 🦄 (@haydenzadams) April 10, 2024
I’m not surprised. Just annoyed, disappointed, and ready to fight.
I am confident that the products we offer are legal and that our work is on the right side of history. But it’s been clear for a while that rather than…
The Dumping Effect on Uniswap’s Performance
Following rumors of Uniswap’s potential legal battle with the SEC, prominent investors began to divest their UNI token stakes.
Market analytics platform Lookonchain observed notable transactions, with three major holders clearing a collective 2.03 million UNI tokens, valued at around $20 million, which corresponded to an approximate 17% dip in the token’s market price.
In particular, two digital wallets identified as 0x2F8b and 0x3555 moved 1.25 million UNI tokens, acquired from Binance on March 3, 2023, back to the exchange just an hour before the report, a move that could net an estimated $3.5 million upon sale.
Similarly, another wallet, tagged 0x4A0B, liquidated 472,691 UNI tokens in exchange for 4.59 million USDC at a conversion rate of $9.71 per token, roughly seven hours earlier, culminating in a gain of $1.67 million.
Moreover, a cluster of six wallets resettled 316,430 UNI tokens, worth $3.16 million, to Binance.
Additionally, Lookonchain disclosed that the address whitzardflow.eth experienced a significant sell-off, parting with 107,010 UNI tokens, equivalent to $1 million, about an hour before the report.
This address had previously collected 262,045 UNI tokens, priced at $3 million, from March 1 to March 13, securing them at an average cost of $11.42 each. UNI tokens were subsequently staked in Aave to secure a stablecoin loan of $1.8 million.
However, the subsequent market drop for UNI tokens started a liquidation for whitzardflow.eth, showcasing the disposal of 107,010 UNI tokens to reconcile the debt.
According to CoinMarketCap, the UNI token is currently trading at $9.33, after a drop of 14% in the past one day, and holds a market cap of $5,568,739,227. With $778,841,213 in 24-hours volume, the coin has a total supply of 1 Million and a circulating supply of 598,736,140.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
