Uniswap (Coin: $UNI) is a decentralized trading protocol popular for its facilitation of automated trading of crypto tokens using smart contracts. It is a platform where developers, traders, and liquidity providers participate in exchanging tokens without third parties.
On the evening of April 10, 2024, Uniswap Labs, which created the original Uniswap protocol, announced that the SEC had sent them a Wells Notice, notifying them of potential enforcement measures.
Uniswap Labs Prepares To Fight Back
On Wednesday, Uniswap Labs posted on X that it had received an enforcement notice from the SEC and was ready to defend itself.
Uniswap stated, “Today Uniswap Labs received a Wells notice from the SEC And we’re ready to fight This is the latest political effort to target even the best actors in crypto like Uniswap and Coinbase All Uniswap products and the Uniswap Protocol are unaffected.”
After the post, the UNI token fell by 16%, falling from position 21 to 22 by market cap.
The exact details of the SEC Wells Notice to Uniswap Lab have yet to be revealed. However, it seems to coincide with the agency’s wider effort to enforce securities laws for US companies involved in the crypto sector, such as Binance US and Coinbase.
Commenting on the Wells Notice, Uniswap founder Hayden Adam said on X that he was not surprised by the notice.
He stated, “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 working to create clear, informed rules, the SEC has decided to focus on attacking long-time good actors like Uniswap and Coinbase. All while letting bad actors like FTX slip by.”
Moreover, Adam also appreciated his team and mentioned that the platform is fully decentralized, transparent, reliable, and secure as they are building new infrastructure from scratch for the users.
Whales Sell Off UNI Tokens
Right after the SEC enforcement notice to Uniswap Labs, three whales sold off 2.03 million tokens, worth approximately $20 million, causing the token’s price to fall by 16% in the past 24 hours.
Two of the whales addresses, 0x2F8b and 0x3555, transferred 1.25 million UNI tokens valued at $11.7 million, obtained from Binance, back to the exchange. According to Lookonchain’s data, this move could yield a profit of approximately $3.5 million if they decide to sell.
According to Coinglass, in the past 24 hours, $14.39 million worth of UNI tokens have been sold on Binance and $7.61 million on OKX.
Uniswap (UNI) Token Price Performance
As of writing this, the $UNI token is trading at $9.08, down by 17.89% in the past 24 hours, while the market cap is down by 18.13% to $5.4 billion. The volume has risen over 400% in the past 24 hours to $800 million.
Should You Buy UNI?
$UNI has fallen by more than 17% in 24 hours, increasing volatility amidst the SEC enforcement action. However, the Uiswap protocol itself is fully decentralized, with Uniswap LAbs only serving as the main developer.
Despite this, the recent SEC notice could lead to the token being delisted from major exchanges, making it unattractive to major investors. Waiting for the issue to be resolved could pay off. XRP, which shot up after Ripple Labs won its case against the SEC, is a good example of this waiting strategy.
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