The SEC’s classification of Solana, Polygon, and Cardano as securities has left them in confusion
Since the beginning of June, the market capitalization of the select group of tokens the SEC classified as securities has dropped by 15%, or $5 billion.
According to a study by Decrypt of data provided by CoinGecko, the market capitalizations of tokens, including Solana, Polygon, and Cardano, which are being pulled into legal fights by the Security and Exchange Commission (SEC), have dropped by 15%, or $5 billion.
The SEC sued two top cryptocurrency exchanges, Binance and Coinbase, on June 5 and 6. Unauthorised issuance of securities was one of the accusations against the two markets. Even though the industry has quickly labelled the pronouncements “pretty unfair,” the tokens have nevertheless taken some harm.
The Ecosystem Brief: Rollup Specialisation report was released by Messari Crypto on June 12, a week after the SEC cases were filed. Since the lawsuits were filed, Messari’s developing markets category—which contains many of the projects the SEC has labelled securities—has decreased by 25%. However, others are showing signs of improvement.
Authorities in a number of nations have started cracking down on Binance, making life difficult for the exchange. Since the SEC complaint was filed, the value of its exchange utility token, BNB, has dropped 21%, from $47 billion to $37 billion.
Market value also dropped for Cardano, Charles Hoskinson’s cryptocurrency. Coingecko’s eighth biggest asset (by market size) is presently trading at $0.29, down 17% from when the SEC complaints were filed.
Polygon has had the most time recovering after the SEC’s devastating setback. Its current market valuation is about $6 billion, down 20% from its peak market cap of $8 billion. Coingecko reports that the current market price of the coin is $0.66.
Although not mentioned in the SEC’s case, several assets flagged by Messari as emergent tokens nonetheless saw declines.
Although Avalanche (AVAX) was one of the greatest beneficiaries during last week’s bullish rise, its market worth has dropped nearly 6% since the lawsuits were filed and is now at $4.6 billion. However, Optimism’s (OP) market value fell 17.5% within the same period to $855 million as of this writing.
Remember that the crypto market has been on a positive surge over the last week despite these significant dips in token values. Since the conventional banking giant BlackRock filed for a spot Bitcoin ETF last week, the price of Bitcoin has surged, lifting the tide for most tokens. This surge is known as the BlackRock Rally.
