Monday brought a reason for celebration for investors in major tokens Solana (SOL), Cardano (ADA), and Polygon (MATIC), who experienced a sudden sell-off over the weekend.
As prices stabilized, the tokens managed to reverse some of the losses, bringing relief to the investors.
Despite minimal changes in the broader market, the tokens saw gains of up to 5% in the past 24 hours.
According to data from CoinGecko, SOL witnessed a 2.2% increase, ADA rose by 3.5%, and MATIC experienced a significant surge of 5.5%. Notably, futures data revealed relatively low open interest and liquidations, indicating that the price movement was primarily driven by spot trading.
In a show of resilience, the development foundations behind these tokens have individually issued statements in recent days, strongly refuting the allegations put forth by the U.S. Securities and Exchange Commission (SEC). These responses have likely played a role in bolstering investor confidence, as they reaffirm the commitment of the foundations to address the regulatory concerns and maintain the progress of their respective projects.
On Thursday, the Solana Foundation made it clear that it does not categorize SOL as a security. Additionally, developers expressed their confidence in the future development activities on the Solana network, stating that they anticipate no decline in the weeks to come. Similarly, on Friday, IOG, the developer behind Cardano, responded to the SEC lawsuit by highlighting “numerous factual inaccuracies” and firmly asserting that ADA is not, under any circumstances, considered a security.
Polygon Labs emphasized on Sunday that MATIC was developed and deployed outside the United States and made available to a broad audience. They clarified that their actions never specifically targeted the United States. In the preceding week, the U.S. Securities and Exchange Commission (SEC) levied multiple charges against cryptocurrency exchanges Binance and Coinbase. The charges included allegations of offering unlicensed securities to U.S. investors and designating certain tokens as securities.
The foundations, companies, and protocols associated with the tokens, including Polygon (MATIC), Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager (VGX), Dash (DASH), and Nexo (NEXO), have seen these tokens classified as securities.
Within a matter of hours on Saturday, the prices of the three tokens experienced a significant decline, reaching as much as a 30% drop. On-chain data analysis indicated that trading companies Jump Trading and Cumberland transferred millions of dollars’ worth of MATIC to exchanges just prior to the market downturn. This suggests that investors may have been offloading tokens mentioned in the SEC filings during this period.
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Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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