ShapeShift Settles SEC Lawsuit; Uniswap at Two-Year High as Defi Total Value Crosses $100B
Summary:
Cryptocurrency exchange ShapeShift has settled a lawsuit with the SEC dating back to its pre-DAO days in 2021. Uniswap's token has reached a two-year high amid positive market trends, while Solana proponents argue the platform needs a significant consumer app to compete with Ethereum. There is a growing concern within the crypto industry over the damage caused by pump-and-dump schemes. The total value locked in DeFi has crossed $100 billion for the first time in three years. Solana's potential major upgrade in 2024 could aid its competition with Ethereum alongside a potential breakthrough consumer app.
ShapeShift, the cryptocurrency exchange, has come to an agreement regarding a lawsuit with the U.S Securities and Exchange Commission (SEC), based on issues that arose before it transitioned into a decentralized autonomous organization (DAO) in 2021. Uniswap's (UNI) token soared to a two-year peak due to widespread market optimism, and supporters of Solana argue it requires a groundbreaking consumer app to give Ethereum a run for its money. Industry professionals discuss how the credibility of the crypto world is damaged by pump-and-dump tactics, and the total worth in DeFi exceeds the $100 billion mark, which hasn't been achieved in the last three years.
Advocates for Solana hold the belief that in order to equal Ethereum, the platform needs a pivotal consumer application and a possible key upgrade in 2024 which is designed to enhance transaction processing. There has been an increase in activity on the Solana chain combined with a rise in the number of developers and users, largely due to a resurgence sparked by memecoins in December 2023.
Deceptive pump-and-dump schemes, which typically involve manipulating investors to purchase tokens while secretly offloading their shares at inflated prices, still occur within the decentralized finance (DeFi) environment, often likened to the Wild West, and contribute to a negative impact on the sector's credibility.
Uniswap's UNI, the Uniswap Decentralized Exchange's governance token, has seen an impressive rise of 46%, trading above $17, a price not seen since January 2022. It also experienced a trading volume surge of 120% over the previous 24 hours, equating to $1.18 billion, and its market capitalization has risen by 44% over the past week to $9.4 billion, pushing it up to be the 16th largest cryptocurrency by market capitalization.
In reference to the SEC settlement, ShapeShift agreed to a cease and desist order and will pay a financial penalty whilst contesting that the accused operations closed in 2021 when the exchange became a DAO. The SEC's claims contend that ShapeShift ran a crypto “vending machine” platform from 2014 to January 2021, actually acting as a “market maker” for trades, thus profiting from the price spread of those trades.
The DeFi market as a whole is currently showing positive signs with data from Cointelegraph Markets Pro and TradingView listing the top 100 DeFi tokens by market capitalization as mostly being on an uptrend weekly. The TVL in DeFi protocols has seen a landmark breakthrough, with a value of over $100 billion for the first time in three years.
Published At
3/8/2024 10:25:00 PM
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