MATIC is currently facing increasing uncertainty as it was officially launched class as a security by the US Securities and Exchange Commission, as disclosed in the recent lawsuit against Binance.
As a result, the Polygon blockchain token has seen huge success He falls 31% in a week, setting a new record. However, there is some positive news as it has been able to recover, seeing a promising rebound of more than 11% over the past 24 hours.
Source: Coingecko
L2 Coins will be the next Bullrun Coins. Already known, already confirmed.one dollar ADA dollars $matic et al L1 have obtained the security seal. Heavy regulation will start = narrow selection of L1/L2 coins. Where will all this money flow to? pic.twitter.com/jw5xpLRA4j
Zoomer Oracle June 5, 2023
MATIC is one of 13 tokens under Binance’s lawsuit that will be classified as a security. MATIC’s developer, Polygon Labs, issued a statement on Twitter in Polygon’s defense saying that the network was “developed outside of the United States, published outside of the United States, and to this day is focused on the global community that supports the network.”
This was the most recent lawsuit against Binance Has follow-up by the Securities and Exchange Commission (SEC) v. Coinbase, stating that the company operates an unregistered exchange in connection with the company’s staking service.
Fear, uncertainty and doubt in the market
With the recent designation of several cryptocurrencies as securities, the market has slipped dramatically over the past week. bitcoin, the top cryptocurrency, earned Dominance in light of recent regulatory filings against Binance and Coinbase.
other icons in file existing They are SOL, ADA, FIL, ATOM, SAND, MANA, ALGO, and COTI. According to the lawsuit, the tokens are listed as investment contracts. This made the Securities and Exchange Commission (SEC) classify them as securities pursuant to Howey testwhich is a test to see if a particular asset is a security or not.
MATIC market cap at $5.8 billion. Chart: TradingView.com
The move by the Securities and Exchange Commission (SEC) was in line with its recent actions against the cryptocurrency industry. Just in February, the regulator cracked down on Kraken betting service along with forcing the company to pay $30 million in fines for violations.
If the aforementioned tokens and companies fail to comply with the SEC, it could lead to another Ripple-like event which will affect the market.
Matic bulls should watch this level
At the time of writing, MATIC is supported at the $0.6 price level which will act as a launching pad for the upside move in the future. However, external market forces still control the token’s momentum and price movements in the near future. Recent lawsuits have slashed millions in potential earnings for investors.
Source: Coinglass
while, Queen Glass The data shows that MATIC long positions are being liquidated as the market collapses after the lawsuits are announced.
Despite this, the buying pressure persisted after the crash with MATIC bulls continuing to support $0.6. If they can hold this support level, we could see a return towards the $0.83 support level in the medium to long term.
Featured image via The Daily Hodl