With the price of Uniswap dropping by 15%, significant liquidations have occurred across the board, accompanied by whales selling off $20 million worth of UNI tokens. Uniswap prepares for an extended struggle ahead.
Uniswap’s native cryptocurrency, UNI, experienced a significant price decline of 15% shortly after receiving a Wells Notice from the U.S. SEC on April 10. Currently, the UNI price is down by 15.39%, trading at $9.42, with a market cap of $5.6 billion. Additionally, daily trading volumes have surged by a remarkable 313% to $650 million.
Whale Liquidations Follow Speculation of Uniswap’s Legal Clash with SEC
Following speculation about a potential legal confrontation between Uniswap and the SEC, significant market movements have been observed. Top whales swiftly began liquidating their UNI holdings in response to the news.
According to Lookonchain, three prominent holders unloaded a total of 2.03 million UNI tokens, equivalent to $20 million. This mass sell-off triggered a roughly 17% decline in UNI’s price.
Wallets 0x2F8b and 0x3555 transferred 1.25 million UNI tokens (worth $11.7 million) received from Binance on March 3, 2023, to Binance, potentially realizing around $3.5 million in proceeds if sold. Similarly, wallet 0x4A0B sold 472,691 UNI tokens for 4.59 million USDC at a rate of $9.71, generating a profit of $1.67 million. Additionally, six wallets moved 316,430 UNI tokens (valued at $3.16 million) to Binance.
Whitzardflow.eth Liquidation Event and Loan Repayment
According to Lookonchain, whitzardflow.eth recently underwent a liquidation event, selling off 107,010 UNI tokens, which amounted to approximately $1 million. This transaction occurred approximately one hour ago.
Previously, whitzardflow.eth had acquired 262,045 Uniswap (UNI) tokens valued at $3 million between March 1 and March 13, purchasing them at an average price of $11.42. These tokens were subsequently deposited into Aave, and a loan of $1.8 million in stablecoins was obtained against them.
However, due to the subsequent decline in the price of UNI tokens, whitzardflow.eth faced liquidation. This resulted in the sale of 107,010 UNI tokens ($1 million) to settle the debt. Presently, they retain 155,034 UNI tokens valued at approximately $1.46 million, with a health rate of 1.19.
whitzardflow.eth was liquidated 107,010 $UNI($1M) 1 hour ago.
He bought 262,045 $UNI($3M) from Mar 1 to Mar 13 at $11.42 and deposited it into #Aave, then borrowed $1.8M of stablecoins.
Due to the decrease in $UNI price, he was liquidated 107,010 $UNI($1M) to repay the debt and… pic.twitter.com/6mRg8sL3YE
— Lookonchain (@lookonchain) April 11, 2024
Uniswap Founder Foresees Long Legal Battle with SEC
Following the receipt of a Wells Fargo notice from the U.S. SEC, Uniswap founder Hayden Adams shared his perspective on the X platform. Adams anticipates that the legal battle with the SEC could endure for years.
Expressing frustration with the SEC’s recent actions, Adams highlighted concerns about the agency prioritizing the protection of opaque systems over consumer interests. He emphasized the forthcoming battle with the regulator and stressed the importance of defending both Uniswap and the broader industry.
Anticipating a protracted legal struggle that may escalate to the highest judicial authority, Adams emphasized the significance of the conflict. He underscored that the outcome could profoundly shape the future of financial technology and the industry as a whole.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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