Welcome back to Altcoins at a Glance, where we summarize news and events that happened with your favorite altcoins.
It has been a crazy week with all the fear, uncertainty, and doubt surrounding the crypto industry. Many cryptocurrencies have plummeted to lows that are reminiscent of 2022 prices. The SEC case against top exchanges Binance and Coinbase has triggered sell-offs as investors try to get out of the market. So don’t be surprised if the news revolves around the topic for some time.
Major Altcoins in Trouble After SEC Sues Binance and Coinbase
- The SEC has decided to take top crypto exchanges Binance and Coinbase to court over alleged securities infractions.
- Binance and its founder Changpeng Zhao (CZ), are being accused of mixing billions of customer funds and secretly sending the money to a company under CZ’s name,
- Coinbase is accused of operating as an unregistered broker and exchange. The SEC complaint also identifies Coinbase’s staking program as an investment contract and unregistered security. Coinbase stocks dived after the SEC filed the case.
- Binance BNB token has taken a beating. The SEC is accusing the world’s biggest crypto exchange of offering and selling unregistered securities, namely its own BNB token and the BUSD stablecoin.
- The BNB token has dropped from above $300 to below $230 within the week. This is a massive 25% decrease in value. This negative price action was also seen in other major altcoins like Polygon (MATIC), Cardano (ADA), and Solana (SOL).
IOHK says ADA is not Security, as the SEC Continues Siege against Altcoins
- Input-Output Hong Kong (IOHK), the company behind Cardano (ADA), refutes the U.S. Securities and Exchange Commission’s claims that ADA is being offered as an unregistered security.
- The SEC’s case against Binance included several claims that Cardano was an unregistered security. According to the SEC, the three founding entities of Cardano – IOHK, the Cardano Foundation, and Emurgo – owned the protocol, suggesting that the layer-1 blockchain lacked decentralization.
- IOHK responded by firmly rebuking the accusation. The company stated, “under no circumstances is ADA a security under U.S. securities law, and it never has been.”
- ADA’s price dropped to $0.22 from $0.37 since the SEC filed enforcement actions against Coinbase and Binance.
Solana Foundations Denies SOL is Security
- The SEC’s enforcement action against the crypto industry is heavily focused on exchanges offering unregistered securities. Solana is one of those projects being tagged as securities. However, the Solana Foundation denies that SOL is a form of security.
- The Solana Foundation stated that SOL, the chain’s native token, is an open-sourced, community driven software project. The decentralized engagement of users and developers decides its growth and evolution, which sets it apart from securities.
- The price of SOL dropped from $21 to as low as $12.8 during the week. This represents a 41% drop in value.
Shiba Inu Whale moves more than 4 Trillion SHIB
- A Shiba Inu whales has transferred more than 4 trillion tokens to the Binance platform.
- The approximate value was estimated to be more than $31 million.
- Investors usually move their crypto into exchanges to sell them
- The meme coin is currently trading at $0.00000668. The token did not escape the recent dump caused by the SEC tagging multiple altcoins as securities.
Robinhood Will Stop Support Top Altcoins – ADA, MATIC, SOL
- Robinhood, a popular trading platform, has announced that it will stop supporting ADA, MATIC, and SOL on June 27, 2023.
- ADA, MATIC, and SOL left on Robinhood accounts will be sold for market value and the proceeds will be credited to the customer’s buying power.
- Robinhood stated that the announcement only affects the 3 cryptocurrencies.
- The exchange did not elaborate on why it is delisting the altcoins, but the SEC has filed enforcement actions against Binance and Coinbase for breach of securities law. The exchanges allegedly offered unregistered securities that included ADA, MATIC, and SOL.
That was a tough week. So are you still keeping your Altcoin HODL bags? Let us know in the comments.
Featured image from Pixabay.
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