By
Svetlana Soroka
April 26th, 2024
The SEC recently tagged many of the tokens as ‘unregistered securities,’ and the allegations have landed a huge blow on the tokens.
Solana (SOL), Polygon (MATIC), Cardano (ADA), and some other tokens have collectively lost about 15%, or $5 billion, of their market capitalization within the month. This is according to CoinMarketCap data. However, the loss may be directly linked to the recent actions of the US Securities and Exchange Commission (SEC).
The SEC recently tagged many of the tokens as ‘unregistered securities,’ and the allegations have landed a huge blow on the tokens, albeit expectedly.
Recall that Coinspeaker reported that the SEC filed a lawsuit against Binance on June 5. At the time, the regulator accused the exchange of violating US securities laws. By June 6, the SEC also sued Coinbase – another top crypto exchange, claiming that it sells ‘unregistered securities’.
Although the firms have since denied the claims, SEC’s actions have caused the tokens some serious damage.
Polygon (MATIC) – the Biggest Market Loser
In its lawsuits against Binance and Coinbase, the SEC categorically mentioned the cryptocurrencies it considers securities. They include Solana (SOL), Polygon (MATIC), Cardano (ADA), The Sandbox (SAND), Filecoin (FIL), Cosmos Hub (ATOM) Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI (COTI). And virtually all of these cryptocurrencies have been affected in one way or another by SEC’s proclamation.
However, a June 12 publication by Messari Crypto confirms Polygon and Cardano as the biggest losers.
Polygon currently holds roughly $6 billion in market value and is down 20% from the $8 billion market cap it had at the start of June. As of publication, the token is trading at $0.66, per CoinMarketCap data.
Charles Hoskinson’s Cardano, on the other hand, has its market capitalization down by 17% and was seen trading at $0.29.
Although Binance’s native token BNB was not included in SEC’s list, it has been the biggest loser so far. And expectedly so, considering how the exchange continues to see pressure from different regulatory authorities around the world. The market cap of its BNB token has dropped a massive 21%. That is, its market cap ($47 billion before SEC’s filing) has now lost about $10 billion since the filing.