In the past 24 hours, tokens of major blockchain networks have witnessed a substantial slide of over 20%. This decline comes in the wake of recent allegations that 13 tokens are securities, as filed by the U.S. Securities and Exchange Commission (SEC) in a lawsuit against popular crypto exchanges Binance and Coinbase.
Blockchain tokens experience up to 25% decline
The most significant losses occurred during the early hours of Saturday, with Solana (SOL), and Cardano (ADA) experiencing drops of up to 25% within a short period. Speculation arose on Crypto Twitter, suggesting the possibility of a major crypto fund offloading its holdings during these relatively illiquid market conditions.
Notably, other prominent tokens such as Binance Coin (BNB), Dogecoin (DOGE), and XRP also witnessed declines of over 11%. Bitcoin (BTC) saw a 3.6% drop, while Ether (ETH) slid 4.5%. The crypto-tracked futures market saw nearly $300 million in liquidations during the early hours of Saturday, surpassing the record figures from earlier this week.
In a recent development, the SEC identified tokens associated with foundations, companies, or protocols including blockchain tokens like Polygon (MATIC), Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Near (NEAR), Voyager (VGX), Dash (DASH), and Nexo (NEXO) as securities. This regulatory move has prompted major retail trading platforms like Robinhood to halt support for tokens ADA, SOL, and MATIC, presumably in response to the SEC filings.
SEC lawsuit triggers market sentiment and sell pressures
The SEC’s classification of these tokens as securities have generated uncertainty and caution within the crypto market, leading to a risk-off sentiment among investors. The potential legal implications and increased regulatory scrutiny have triggered a wave of selling pressure and a subsequent decline in token prices.
It is important to note that these recent developments highlight the ongoing challenges faced by the crypto industry as it navigates the evolving regulatory landscape. Market participants and investors are closely monitoring the outcome of the SEC lawsuit and its potential impact on the broader cryptocurrency ecosystem.
As the market adjusts to these regulatory uncertainties, it remains to be seen how blockchain networks and market participants will respond. The future trajectory of major tokens will likely depend on the resolution of the SEC lawsuit, as well as any subsequent regulatory actions and market sentiment in the coming days and weeks.
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