Briefly
- Solana, Polygon and Cardano each lost 15% ($5 billion) of their capital due to the SEC lawsuits.
- The SEC has filed lawsuits against Binance and Coinbase, which affected the aforementioned tokens and caused a 25% drop in emerging markets.
- Binance and Cardano have seen their market caps drop by 21% and 17% respectively since the SEC lawsuit.
Solana, Polygon, Cardano and other tokens dragged into the Securities and Exchange Commission (SEC) legal battles have lost 15%, or $5 billion, of their collective market capital, according to an analysis by Decode From CoinGecko data.
On June 5 and 6, the SEC filed lawsuits against Binance and Coinbase, two of the largest cryptocurrency exchanges in the industry. Among the accusations against the two stock exchanges are allegations that they sold unregistered securities. The industry wasted no time calling the data “a bit unfair,” but that didn’t stop the tokens from suffering some collateral damage.
According to the SEC lawsuits against Binance and Coinbase, a few cryptocurrencies were mentioned, including: Solana (SOL), Cardano (ADA), Polygon (MATIC), filecoin (FIL), Cosmos Hub (corn), sand (sand), decentralization (mana), Algorand (something), Infinity Axis (AXS) f cutie (Coty).
On June 12, a week after the SEC’s lawsuits were filed, my path publish his report Ecosystem Brief: Cumulative Specialization. Massari’s Emerging Markets category, which includes several projects classified as securities by the SEC, has shown a 25% decline since the lawsuits were filed. But some are already starting to recover.
Filecoin and Algorand are within less than 2% of the market cap they had when the lawsuits were filed. Cosmos ATOM token has a 5% gap to close. The rest are not so lucky.
Binance has suffered a particularly stringent regulatory crackdown around the world, with authorities shutting down the platform in several countries. This is likely why its utility token, BNB, has seen a market capitalization He falls 21%, from $47 billion to $37 billion since the SEC lawsuit was filed.
The market value of Cardano, the venture created by Charles Hoskinson, has also plummeted. Coingecko’s eighth-largest asset is currently trading at $0.29, with a market capitalization of $10 billion, which is down 17% since the SEC lawsuit was filed.
Polygon was the one who struggled the most to recover from the blow dealt to him by the SEC. Today it has a market value of around $6 billion, down 20% from the $8 billion market cap it had at the start of the money. Code, according to Koenjikoit is currently trading at $0.66.
Some of the assets Messari identified as emerging tokens were not included in the SEC lawsuit, but they still suffered losses.
Avalanche (AVAX) has seen its market cap decline about 6% Since the lawsuits were filed, which is currently $4.6 billion. On the other hand, Optimism (OP) lost 17.5% of its total market capitalization in the same period, trading $855 million at the time of writing.
However, keep in mind that despite these significant drops in cryptocurrency prices, the cryptocurrency market has been on a bullish run over the past week. The BlackRock Rally, so named due to the traditional finance giant’s unveiling of a Bitcoin ETF last week, sent Bitcoin above $31,000 for the first time in months, turning most of the tokens around.