Uniswap and MetaMask, two crypto platforms, have stopped supporting the troubled HEX coin.
In the world of cryptocurrencies, get ready for a wild ride as Hex (HEX) struggles to adjust to a seismic shift brought on by the recent lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against its founder, Richard Heart.
In addition to HEX, the SEC’s allegations that Heart conducted an unregistered securities offering in 2018 have placed doubt on other cryptocurrency projects by the company, including PulseChain and PulseX, which the regulator has characterized as fraudulent.
The effects were immediate, and since the SEC classified HEX as a security, its market value has fallen by roughly $500 million. The market capitalization, which was formerly remarkable and was at $1.47 billion at the time of the lawsuit announcement, fell sharply, reaching a low of $706 million on August 2. The HEX token rose by almost 20% in the last two days, crossing the $1 billion threshold once more, and HEX was able to maintain some resiliency.
Related: The Stakes Have Never Been Higher for Richard Heart as SEC Sues HEX Crypto Founder
Pulsechain TVL and Trading Volume
The effect wasn’t just seen by HEX; Pulsechain, a sister layer-1 network, also saw a considerable reduction in the overall value of assets held there. The total value locked (TVL), which was $327 million on July 31 and $136 million on August 2, decreased by more than 50%. Nevertheless, Pulsechain’s TVL has made some progress and is now at $206.43 million.
The SEC action appeared to have an unforeseen effect, as the trading volume of decentralized exchanges (DEX) on the Pulsechain network increased by an incredible 300%. Trading activities on PulseX, the network’s largest DEX, reached an all-time high volume of $138.49 million on August 1, and the DEX protocol has continued to boast an average of over $50 million in trades since then.
MetaMask and Uniswap Response
The SEC’s legal action has shocked the cryptocurrency community, prompting significant platforms like MetaMask and Uniswap to purportedly stop supporting HEX transactions. There is widespread speculation that the action may have been taken to protect themselves from potential regulatory implications. However, the HEX community and decentralization supporters have criticized this choice, expressing concerns about the true definition of “decentralized” in the cryptosphere.
Come on Metamask… Really??? You too? 😒 pic.twitter.com/D3BO1uJAVF
— JZ (@jessez) August 2, 2023
The HEX community and the wider crypto community are awaiting new developments as the dust settles, unsure of the long-term effects of the SEC action. Watch for more surprises as HEX makes its way through this turbulent time and adjusts to the changing regulatory atmosphere!