In a surprising turn of events, the Securities and Exchange Commission (SEC) has dragged Solana, Polygon, Cardano, and other tokens into a wild court battle, resulting in a collective market capitalization loss of a whopping $5 billion. It’s like a crypto version of a legal tug-of-war, and these tokens are feeling the burn. Ouch!
SEC Claims Solana, Polygon, Cardano Are Securities in Binance Lawsuit
The SEC has aimed its mighty regulatory cannon at Binance, one of the biggest crypto exchanges, but that’s not all. They’ve also set their sights on altcoins like Solana and Polygon. In a lawsuit filled with drama, Binance and its CEO Changpeng Zhao were slapped with 13 charges, including allegations of shady conduct and attempts to dodge securities laws. But wait, there’s more! The SEC also declared that Solana, Polygon, Cardano, and a bunch of other coins fall under the securities category.
Read more: Japan Lightens the Crypto Tax Load, Proving It’s Cooler Than the US
SEC Playing Favorites? Former SEC Cyber Chief Calls Foul Play
The SEC, led by the formidable Gary Gensler, has been throwing punches left and right at the cryptocurrency industry. They took aim at Coinbase and Binance, accusing them of breaking securities laws. However, here’s the head-scratcher: they conveniently left out a whole bunch of other cryptocurrencies from their hit list. Seriously, out of the gazillion coins out there, only a dozen or so got called out as securities. What’s up with that, Mr. Gensler? Is this some kind of selective prosecution party?
Tokens Struggle to Recover, While SEC Keeps Them on Their Toes
Recovering from the SEC’s punch isn’t easy. Just ask Polygon—it’s having a tough time bouncing back from the regulatory smackdown. Its market value has taken a nosedive, going from $8 billion to a mere $6 billion. Filecoin and Algorand managed to stay somewhat afloat, only losing a measly 2% of their market capitalizations. Cosmos ATOM is lagging behind with a 5% gap to fill. As for Binance’s utility token, BNB, it’s feeling the heat, with a 21% drop from $47 billion to $37 billion. Someone get BNB an ice pack!
Cardano Takes a Hit, Courtesy of the SEC and Charles Hoskinson
Charles Hoskinson must be fuming. His beloved Cardano, the 8th largest asset in the crypto kingdom, suffered a brutal blow to its market capitalization. It’s down 17% since the SEC lawsuits were unleashed. That’s gotta hurt, both the ego and the bank account.
Messari’s Report Unveils the Fallout, but Some Tokens Catch a Break
Messari Crypto’s report adds insult to injury. According to their findings, the SEC’s lawsuits caused a 25% drop in the emerging markets category, home to many of the unfortunate tokens labeled as securities. However, a few lucky ones managed to start clawing their way back up. Keep fighting, little tokens!
Even in the midst of all this chaos, the crypto market manages to find its silver lining. The recent BlackRock Rally, dubbed so because of the finance giant’s Bitcoin ETF filing, brought some much-needed positive vibes. Bitcoin’s price soared to over $31,000, creating a rising tide that lifted most tokens. Keep calm and hodl on!
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