Sued by the SEC, UNI fell by more than 20%. Can Uniswap 'pay the money to avoid disaster'?

Author: Xiyou, ChainCatcher

Editor: Marco, ChainCatcher

On April 11, "Fortune Magazine" reported that the United States The Securities and Exchange Commission (SEC) has issued a warning against Uniswap and intends to take enforcement action against the company.

Subsequently, Uniswap founder Hayden Adams replied on the social platform that Uniswap Labs has received a formal Wells Notice from the U.S. Securities and Exchange Commission (SEC), and the U.S. SEC plans to It filed a lawsuit.

Regarding the SEC’s lawsuit, he said that Uniswap has processed more than 2 trillion US dollars in transactions, and many teams and developers have forked or developed based on its code. The product is legal and has been completed. Be prepared to fight back and will fight it to the end.

The "Wells Notice" is a reminder before the US SEC files a formal lawsuit against the target. It indicates that the regulatory agency plans to take enforcement actions against the target and has the opportunity to discuss certain charges with the SEC before receiving a formal lawsuit. Carry out refutation, communication and negotiation, etc.

After the news broke, the native token UNI of the Uniswap platform plummeted, falling from US$11.2 to US$8.9, a short-term drop of more than 20%. As of press time, the price was quoted at US$9.3.

UNIThe dividend plan has been paused

The impact of the SEC’s black swan incident continues , news of large-scale selling of UNI tokens on the chain continues. Data on the chain shows that after the news of the SEC charges was released, the Uniswap team or wallets associated with early investors sold 15,000 UNI (worth $167,000) at an average price of $11.18; a smart money address transferred more than 10 million worth of UNI to Binance US dollar UNI token; the whale marked "whitzardflow.eth" on the chain was liquidated with more than 100,000 UNI positions (worth approximately US$1 million), etc.

The dividend plan of the UNI token may have been paused because of this. The on-chain voting results of the proposal "Activating Uniswap Protocol Governance" that was supposed to be released on March 8 have yet to move. Some users said , it turned out that the SEC affected the advancement of the proposal.

On February 23, the Uniswap Foundation issued a document stating that it had released a proposal to "Activate Uniswap Protocol Governance" on the governance forum, proposing that its protocol fees be proportionally distributed to UNI representatives who have pledged and entrusted their voting rights. Coin holders will start voting on Snapshot on March 1st. After the news of Uniswap's dividend proposal came out, the price of UNI tokens skyrocketed, rising from US$7 to a maximum of around US$12 overnight.

The management proposal was completed on March 7 and received 100% voting approval rate. The on-chain voting was originally supposed to be released on March 8, but it was not implemented as scheduled. There was no news, and there was no official announcement. explain.

It wasn’t until news of the SEC lawsuit came out that users suddenly realized that it was the SEC that forced UNI’s dividend plan to be suspended.

UniswapCan it be settled with a "fine"?

In response to this SEC’s behavior, Uniswap Labs wrote in the official "Fighting for DeFi" article that Uniswap products are legal, and all existing products will always be running and available, and New products will continue to be introduced.

However, it is currently unclear the specific content and nature of the SEC’s accusations against Uniswap Labs.

According to previous SEC lawsuits against well-known cryptocurrency companies such as Binance, Coinbase, and Ripple, Uniswap Labs may be labeled as "illegally providing unregistered securities to the public, or failing to register as a broker or exchange "And other charges.

However, the notice issued by the SEC this time is not a formal prosecution or regulatory enforcement document, leaving Uniswap with an opportunity for communication.

In August last year, the Southern District Court of New York (SDNY) dismissed a class action lawsuit against Uniswap. This case is a group of investor plaintiffs accusing Uniswap and its founders of allowing fraudulent tokens to be issued and traded on the protocol. They accused Uniswap of failing to register in accordance with the U.S. federal securities laws and illegally listing fraudulent tokens, causing damage to investors and demanding compensation.

Regarding this case, the judge believed that the current encryption regulatory system cannot provide a basis for the plaintiff’s claims. Uniswap is not responsible for any damage caused by third parties using the protocol, and the tokens that committed the damaging behavior should be issued Party should bear responsibility.

Although the SEC warning came very suddenly, some users believe that Uniswap will most likely not have the upper hand in this future showdown.

Some community users believe that Uniswap is likely to settle the SEC's prosecution with a fine.

Since the regulatory boots have not yet been officially launched, the content and details of the accusations against Uniswap have not been clarified, and the future is still full of uncertainty, which has once again cast a shadow on the DeFi industry that has been stagnant for a long time.

Uniswap is the leading product in the DeFi industry, and every move made by the SEC will be related to the future development of other DeFi protocols.

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