Uniswap Trading Plunge and UNI Token Dip Following SEC Legal Notice

By: Isha Das

Trading activity on the Uniswap decentralized exchange dropped nearly 10% following receipt of a Wells notice from the US Securities and Exchange Commission (SEC) by Uniswap Labs. Data from DeFillama reveals that Uniswap facilitated $2.7 billion in trades across various blockchain networks including Ethereum, Arbitrum, Coinbase-backed Base, and others.

Consequently, Uniswap's UNI token also suffered a significant impact as the news led it to hit a multi-week low of $9.09. As per on-chain data analysts, three whale investors dumped 2.03 million UNI worth $20 million in response to the SEC's action. Moreover, other substantial investors transferred around 316,400 UNI tokens to Binance, valued at approximately $3.15 million.

Defending the legality of their products and asserting readiness to tackle any potential lawsuits from the SEC, Mavin Ammori, the Chief Legal Officer at Uniswap Labs, focused on the shaky nature of the SEC's claims which pertain mostly to securities rather than most tokens.