Cryptocurrencies experienced a widespread decline following the accusations made by the US Securities and Exchange Commission against Binance Holdings Ltd., accusing them of mishandling funds and providing false information to regulators.
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The SEC lawsuit also claimed that certain tokens, including Solana, Cardano, Polygon, Filecoin, Cosmos, Sandbox, Decentraland, Algorand, Axie Infinity, and COTI, which were traded on Binance.com and Binance.US, were offered and sold as securities. This development could have significant implications for other exchanges that offer these tokens. Consequently, Solana saw a drop of up to 13%, Cardano decreased by 8%, Polygon slipped by 6%, and Filecoin slumped by 10%.
As a result of these events, Bitcoin also experienced a decline of up to 6.7% to $25,415, reaching its lowest point since April. The native token of Binance, Binance Coin, also dropped by as much as 13%. Bitcoin represents nearly 50% of the total value of the $1.2 trillion cryptocurrency market, as per data from CoinMarketCap. Meanwhile, Binance Coin holds the position of the fourth-largest token, with a market value of approximately $43 billion. It is worth noting that Binance handles about half of all cryptocurrency trading volume.
In response, Binance published a blog post stating that the SEC’s allegations should not warrant an enforcement action and that they intend to vigorously defend their platform.
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