Investors in Solana’s SOL, Cardano’s ADA and Polygon’s MATIC, which saw a sudden sell-off over the weekend, found some relief on Monday. This was due to the relatively stable price of these tokens amidst the overall market turmoil.
According to data from CoinMarketCap, SOL saw a 2.7% increase, ADA was up 4.4% and MATIC was up 4.25%. Data also shows that most of this movement was mainly due to the increase in spot trading.
Foundations respond to SEC allegations
In recent days, the development fundamentals of these tokens have individually released statements contradicting allegations from the US Securities and Exchange Commission (SEC) that likely have had a positive effect on investor confidence.
The Solana Foundation claimed on Thursday that SOL was not considered a security, and developers expressed optimism that development on the Solana network would not slow down in the foreseeable future. Similarly, Cardano developer IOG responded to the SEC’s lawsuit on Friday, stating that it contained “numerous factual inaccuracies” and emphasizing that ADA was not considered a security under any circumstances.
On Sunday, Polygon Labs clarified that MATIC was developed and deployed outside the US and made available to a broad range of individuals without targeting the US specifically.
Over the past week, the SEC filed multiple charges against crypto exchanges Binance and Coinbase, including offering unlicensed securities to US investors. The SEC also classified several tokens such as Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager (VGX), Dash (DASH) and Nexo (NEXO), as effects. These tokens are issued by foundations and companies or linked to different protocols.
However, Solana is down 29.5% in the past seven days, ADA is down 26% and MATIC is down 28.49% over this period. The SEC effect has had a chaotic effect on the entire cryptocurrency market.
