UNI, the governance token of Uniswap, has been falling in value. This is in line with the prevailing market attitude.
In the last 24 hours, the UNI token has lost 2 percent of its value as a result of two important occurrences that are drawing the attention of UNI holders.
Uniswap Labs, the company Hayden Adams founded, the DEX’s inventor, and several prominent investors are the targets of a class-action lawsuit filed last week. In the Southern District of New York, a class-action lawsuit filiation on behalf of the plaintiffs.
Uniswap Personalities Facing a Lawsuit
Plaintiffs say that Uniswap Labs and others have unlawfully marketed, offered, and sold unregistered securities on the DEX. Moreover, they are suing Uniswap Lab for that reason and other claims. Uniswap’s non-existence of a Know Your Customer (KYC) policy has allowed for alleged fraud to occur without the DEX taking action to stop it.
Aside from this claim, the plaintiffs also allege that Uniswap and the defendants profited from the “undisclosed fees” received on “every transaction” made over the platform. This is a suspected violation of US securities laws. The complainants also accused the site of selling coins that were not legitimate.
Among these coins are Rocket Bunny, BoomBaby.io, and Matrix Samurai. The plaintiffs claim that the network has not registered these tokens with the US SEC. However, the court dismissed this.
An Ethereum-based decentralized exchange called Uniswap governs by the holders of the UNI token. Ethereum’s smart contracts do not respond to centralized organizations for the advantage or detriment of any party, unlike traditional exchanges.
According to a court filing, Risley and the other complainants never heard of Uniswap until the lawsuit filiation. In any event, the record implies that the plaintiffs had just a limited amount of experience investing on the site prior to their case.
A New Product from UNI
Seamlessly switching tokens anywhere over the web is what Uniswap Labs launched less than a day following the class action filed. The dApp is available on OpenSea and Oasis, amongst other platforms.
It is part of a Uniswap expansion effort that aims at making fair, open, and transparent markets available to everyone. To incorporate the Widget, developers would only need to write one line of code.
The network received an enthusiastic response from the Uniswap community. However, the native token’s value experienced a downward trend. This is possibly due to its association with Bitcoin and other significant cryptocurrencies. At the time of writing, UNI is trading at $9.4 with a 6% decline in the last week.
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