UNI Price Tanks 15% As Whales Dump Uniswap On Fears of SEC Lawsuit

Uniswap’s native cryptocurrency UNI has taken a major price hit tanking by a staggering 15% within hours of receiving the Wells Notice from the U.S. SEC on Wednesday, April 10. As of press time, the Uniswap (UNI) price is trading 15.39% down at $9.42 with a market cap of $5.6 billion. Moreover, the daily trading volumes have surged by a staggering 313% all the way to $650 million.

Whales Dumping Uniswap In Big Numbers

As soon as the news spread that Uniswap could engage in a legal battle with the SEC, some of the top whales started liquidating their UNI holdings.

Lookonchain reports significant market movements, with three large holders offloading a total of 2.03 million UNI tokens (equivalent to $20 million), leading to a roughly 17% decline in UNI’s price.

Notably, wallets 0x2F8b and 0x3555 transferred 1.25 million Uniswap (UNI) tokens (worth $11.7 million) received from Binance on March 3, 2023, to Binance approximately one hour ago, potentially garnering approximately $3.5 million if sold.

Similarly, wallet 0x4A0B executed a sale of 472,691 UNI tokens for 4.59 million USDC at a rate of $9.71, approximately seven hours prior, resulting in a profit of $1.67 million. Additionally, six wallets moved 316,430 UNI tokens (valued at $3.16 million) to Binance.

Furthermore, as per Lookonchain, whitzardflow.eth underwent a liquidation event, selling off 107,010 UNI tokens amounting to $1 million approximately one hour ago.

Previously, this entity 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 then deposited into Aave, and a loan of $1.8 million in stablecoins was obtained against them.

However, with the subsequent decline in the price of UNI tokens, whitzardflow.eth faced liquidation, resulting 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.

SEC Battle to Take Years

As soon as the U.S. SEC sent a Wells Fargo notice to Uniswap, founder Hayden Adams shared his views on the X platform stating that he expects the legal battle to continue for years.

Adams expressed frustration regarding the recent actions of the SEC, emphasizing concerns over the prioritization of protecting opaque systems over consumer interests. Adams highlighted the forthcoming battle with the regulator, asserting the need to defend both Uniswap and the broader industry.

Anticipating a prolonged legal struggle that could extend to the highest judicial authority, Adams underscored the significance of the conflict, emphasizing that the outcome could profoundly shape the future of financial technology and the industry as a whole.