Investors in Solana’s SOL, Cardano’s ADA, and Polygon’s MATIC, which experienced a sudden sell-off over the weekend, found some relief on Monday. This was due to the relatively stable price of these tokens amidst the overall market turmoil.
According to data from CoinMarketCap, SOL saw a 2.7% increase, ADA rose by 4.4%, and MATIC surged by 4.25%. Data also reveals that most of this move was primarily due to the increase in spot trading.
Foundations Respond to SEC’s Allegations
In recent days, the development foundations of these tokens have individually released statements countering allegations made by the U.S. Securities and Exchange Commission (SEC), which likely had a positive impact on investor confidence.
The Solana Foundation, on Thursday, asserted that SOL was not considered a security, and developers expressed optimism that development on the Solana network would not decline in the near future. Similarly, on Friday, Cardano developer IOG responded to the SEC’s lawsuit, stating that it contained “numerous factual inaccuracies” and emphasized that ADA was not considered a security under any circumstances.
On Sunday, Polygon Labs clarified that MATIC was developed and deployed outside the U.S., and was made available to a broad group of individuals without specifically targeting the U.S.
During the previous week, the SEC leveled multiple charges against crypto exchanges Binance and Coinbase, including the offering of unlicensed securities to U.S. investors. The SEC also classified several tokens, such as Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager (VGX), Dash (DASH), and Nexo (NEXO), as securities. These tokens were either issued by foundations and companies or tied to various protocols.
However, Solana is down by 29.5% in the last seven days, ADA is down by 26%, and MATIC is down by 28.49% during this period. The SEC effect has had a chaotic effect on the whole cryptocurrency market.
