Dramaticly, the world of cryptocurrencies experienced a tumultuous hour as several tokens, previously classified as securities by the SEC, witnessed a sharp decline. 

The token market saw a flurry of losses as MATIC tumbled by a staggering 19%, SOL by 17%, ADA by 16%, FIL by 22%, and SAND by 19%. Even tokens not listed as securities, such as OP SUI BSV EOS, were not spared from the market plunge. 

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Source: CoinGecko

However, amidst the chaos, Bitcoin (BTC) and Ethereum (ETH) managed to maintain relative stability, with only a slight decline in their values, according to coingecko.

The repercussions of this sudden downturn were not confined to token values alone. The liquidation amount surged past an astonishing 200 million U.S. dollars within a mere hour, leaving many investors reeling. 

The latest data from Coinglass, a trusted source in the realm of cryptocurrency, unveiled these alarming figures. Notably, the 24-hour period witnessed a total liquidation of $362.45 million, a staggering amount.

Analyzing the liquidation data, it becomes apparent that the market carnage affected both long and short positions. The total liquidation amount for long positions stood at a massive $325.70 million, while short positions faced liquidations amounting to $36.75 million. 

image 39
Source: Coinglass

These figures provide a glimpse into the magnitude of the crisis unfolding within the crypto market. Digging deeper into the data, it is revealed that a significant portion of the liquidation activity, amounting to 126.09 liquidations, originated from the popular cryptocurrency exchange Binance. 

This revelation highlights the impact of this market turmoil on one of the largest players in the crypto trading arena.

While investors and analysts grapple with these startling developments, the cryptocurrency market’s future remains uncertain. 

The drastic decline in token values, the astronomical liquidation figures, and the pronounced influence on Binance all contribute to an atmosphere of trepidation and speculation. 

Companies Dismisses Claims As A Security In Crypto Showdown

As SEC recently filed lawsuits against major crypto exchanges Binance.US and Coinbase, alleging that they facilitated the trading of crypto asset securities, including Solana (SOL), Cardano (ADA), Polygon (MATIC), and others mentioned in the lawsuit.

In response, the Solana Foundation has come forward to contest the U.S. SEC labeling of its SOL token as an unregistered security. 

According to a statement from the Solana Foundation, SOL is the native token of the Solana blockchain, a community-driven open-source project that relies on decentralized user and developer engagement. The foundation firmly believes that SOL should not be classified as a security.

At a recent hacker house event held by Solana in New York City, members of the community expressed little concern regarding the regulatory implications. One developer, in particular, remarked that the security designation of SOL would not significantly impact those buildings on the Solana network.

In a similar vein, the Cardano development company, IOG, dismissed the SEC’s claims that ADA, Cardano’s native token, should be considered a security. 

IOG labeled the allegations made in the SEC lawsuits as containing “numerous factual inaccuracies” and stated that ADA’s status as a security has no bearing on the company’s operations. 

IOG emphasized the importance of understanding decentralized blockchains when formulating responsible legislation, asserting that regulatory clarity is paramount for both the blockchain industry and consumers.

Related Reading | Crypto Clarity: EU’s MiCA Legislation Sets The Stage For Consistency & Security

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