What the numbers say: A recent report from the crypto data website CoinGecko has revealed that the cryptocurrencies mentioned in the U.S. Securities and Exchange Commission's (SEC) lawsuits against two major crypto exchanges, Binance and Coinbase, plummeted by up to 35% in price. The Sandbox (SAND) took the biggest hit, declining by 35% in value. In the top five, SAND was followed by Coti (COTI), Chiliz (CHZ), Decentraland (MANA), and Dash (DASH), respectively. Several other popular tokens, such as Polygon (MATIC), Solana (SOL), and Cardano (ADA), also saw significant price drops following the SEC's complaints. Details: The crypto market cap has similarly been impacted by the increased crackdown. Within 10 days after the lawsuit against Binance, the figure retreated to as much as $1.06T, down from $1.19T one day before the complaint. Relevance: On June 5 and 6, the SEC consecutively filed two separate complaints against Binance, the largest crypto exchange by trading volume, and Coinbase, the largest U.S. exchange, over alleged U.S. securities law violations. In the filings, the agency labeled 19 tokens offered by these exchanges as unregistered securities. These tokens reacted to this move with a sharp decline of 5.8% to 35%. Brands that should care: On the other hand, several trading platforms, including Robinhood and eToro, responded to the SEC's move by delisting some tokens labeled as unregistered securities in the lawsuits. The legal motions are expected to have further implications for other platforms operating in the U.S. and listing these tokens, such as Kraken and Gemini. |
