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Regulators are coming down on decentralized cryptocurrency exchanges. Investors are wondering if there is a risk of a deep plunge? The news about Uniswap’s governance token influenced the decline of the price of UNI.
The price went down by 4% Noteworthy to remember the SEC action pushed the price of XRP down and put it behind in the rank ladder. We are not sure if UNI will follow a trend similar to XRP. Analysts opine that the governance token issue is the last obstacle for UNI before it can rally higher forward. Price resistance is seen at $30.
The software development studio Uniswap Labs (UL) announced the restriction of certain tokens through the app.uniswap.org domain.
The reasoning for this restriction they claim is that they are taking part in “creating a better” financial system. They have reportedly stated that they have taken this decision after reviewing the regulatory landscape and the actions of other Defi Interfaces.
Uniswap Labs claim that the tokens which were removed from the domain represented a “very small portion of overall” trading volume on the platform,
The list of restricted tokens consist of Gold Tether (XAUt), Grump Cat (GRUMPY), iAAVE, iADA, iBNB, sAPPL, sCOIN, and several others related to options, tokenized stocks, and securities from traditional companies.
Further, the software studio clarified, stating that Uniswap Protocol is different from the Interface, which is accessible using the app.uniswap.org.
Hayden previously clarified stating, true decentralization doesn’t mean UL lets you do whatever you want on its website; however, users can access the protocol, through other interfaces.
The Uniswap Protocol remains the most decentralized of the Top DeFi protocols by a wide margin. Why: Non-upgradable and permissionless smart contracts, with no admin keys or ability for UNI holders to steal underlying liquidity.
This just looks like Uniswap is trying to prevent a government crackdown, according to many, which different community members react in a different way.
Meanwhile, Stanislav Kulechov, founder of decentralized protocol Aave, stated “DeFi front-ends should” be hosted on the InterPlanetary File System (IPFS), which will, in turn, make the protocol less dependent on the founding team to maintain their decentralization.
On the other hand, Gabriel Shapiro, General Counselor at Delphi Labs, stated that anyone who forks the Uniswap front-end might receive a lawsuit from the software development studio UL.
There are rumors which that suggest that UL and other DeFi projects have received subpoenas from the Securities and Exchange Commission.
