Crypto News

Uniswap’s $UNI Token Plunges 18% As SEC Threatens Lawsuit

The price of Uniswap’s native token, $UNI, has taken a significant hit today, plummeting by approximately 18% following news of a warning from the U.S. Securities and Exchange Commission (SEC) indicating a potential lawsuit against Uniswap.

Amidst the turmoil, a savvy trader known as 0x335 seized an opportunity, depositing 1.25 million $UNI tokens, valued at $12.05 million, to Binance at approximately $9.66 per token via two wallets.

This move resulted in an estimated profit of $4.23 million, marking a notable 54.7% increase. Impressively, this trader has previously made a total profit of $5.76 million from trading Ethereum ($ETH), Compound ($COMP), and Aave ($AAVE).

Lookonchain data reveals additional activity, with three whales collectively dumping 2.03 million $UNI tokens, amounting to $20 million, causing a further 17% drop in the $UNI price.

Notably, wallets 0x2F8b and 0x3555 deposited the 1.25 million $UNI tokens received from Binance on March 3, 2023, potentially realizing a profit of approximately $3.5 million upon selling.

Meanwhile, wallet address 0x4A0B sold 472,691 $UNI tokens for $4.59 million in USDC at $9.71 per token, resulting in a profit of $1.67 million.

More $UNI Exchange Deposits In Response To The Selling Pressure 

In response to the price decline, six wallets equally deposited 316,430 $UNI tokens, valued at $3.16 million, to Binance.

Additionally, whitzardflow.eth experienced a liquidation event, losing 107,010 $UNI tokens, equivalent to $1 million. This individual had previously purchased 262,045 $UNI tokens from March 1 to March 13 at $11.42 per token and deposited them into Aave, subsequently borrowing $1.8 million in stablecoins. 

Due to the decrease in $UNI price, they were liquidated to repay the debt and now hold 155,034 $UNI tokens, valued at $1.46 million, with a health rate of 1.19.

As the situation unfolds, traders and investors closely monitor the developments surrounding Uniswap and its native token amidst regulatory concerns and market volatility.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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