Securities and Exchange Commission, SEC is looking into Uniswap. And Uniswap is leading in crypto’s decentralized exchange sector. According to some reports, U.S. regulators are looking closely into how investors use UniSwap. And also, they are trying to look into their marketing procedures. SEC enforcement is investigating the company’s crypto lending applications as well. This is also the reason the price of the token has taken a hit in the past couple of days.
SEC is looking into Uniswap and investigating their Defi Exchange
From anonymous sources, it is quite evident that an inquiry is going to take place. On the matter, Uniswap Labs spokesperson says that they are committing to comply with the laws and regulations. Uniswap will also help the regulators with all the information required for the inquiry.
Wondering about Uniswap? Here you go, then.
The people already into crypto must be saying, “well, I know what Uniswap does.” But sometimes, knowing a little more about it anyway is going to help you. Uniswap is a protocol based on the cryptocurrency Ethereum for swapping ERC20 Tokens. ERC is an acronym for “Ethereum Request for Comment”. And it is used for creating and issuing different contracts on the blockchain of Ethereum. Uniswap is a tool for crypto enthusiasts to trade tokens without any platform fees or any middle person.
Why such controversy?
Ethereum blockchain is the base of Uniswap. Though it is the central hub for decentralized exchange, it was criticised on numerous occasions. And that is why at some point in time, swaps and transactions can become expensive.
And recently, the exchange saw a fair amount of backlash after they chose to remove over 100 crypto tokens from their platform. Uniswap is one of the largest dexes by trade volume, and removing 100 crypto tokens seems a bit fishy. Don’t you think? All of a sudden, why such a huge step?
The regulators are suspecting that among those 100 tokens, maybe some were not registered under U.S. regulators. Well, in my mind, it sounds like a positive assumption. However, Uniswap Labs is trying hard to move past this allegation. They write that the tokens were of a tiny portion when compared to the overall volume of the company’s protocol.
Some controversies are already in Uniswap’s Bag.
Some weeks before July 27th, Uniswap started delisting certain coins from trading. And that broke many crypto fanatics hearts. And this particular movement took a huge hit where people were protesting on social media and different Telegram groups. The complete list is available on the Github repository of Uniswap. Among many, some of the tokens were Synthetix, UMA, Etc.
They have already done this before this year; it’s nothing new, but whatever comes up regarding the investigation will be shared with you soon.
What do you think about the investigation of Uniswap? Do you think it’s worth it? Let us know your thoughts in the comment section below. And if you think it was important news, then do like and share it with your friends.