Uniswap’s governance token UNI has been trending to the downside following the general sentiment in the market. The token records a 2% loss during the last day as two major events take UNI holders’ attention and could suggest more downside price action for the short term.
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UNI is trading at $9.4 as of the writing. There has been a 6% drop in 7-days.
Yesterday news broke of a class-action lawsuit brought against Uniswap Labs and Hayden Adams (decentralized exchange developer), as well as other large investors. The plaintiffs were represented by Nessa Risley in the Southern District of New York.
These people are suing Uniswap Labs and others claiming that they have “unlawfully promoted, offer, and sold unregistered securities” on the DEX. In addition, they claim that Uniswap’s lack of a Know Your Customer (KYC) policy has enabled alleged cases of fraud without the DEX taking measures to prevent these supposed activities.
Furthermore, the plaintiff claims the DEX and the defenders have benefited from “undisclosed fees” collected on “every transaction” executed with the platform in an alleged violation of the U.S. Securities laws, according to the document. They also claimed that the platform was selling fraudulent tokens.
Rocket Bunny and BoomBaby.io are some of these. Plaintiffs claimed that these tokens were not registered with the U.S. Securities and Exchange Commission.
Uniswap operates on Ethereum as a decentralized exchange and is controlled by UNI owners. It operates independently of any centralized exchange and has smart contracts that respond to no central authority.
According to the court documents, Risley was not acquainted with Uniswap. At least, the document suggests they have little experience trading on the platform before incurring alleged “substantial losses” which led to their lawsuit.
I am now involved in a Uniswap suit.
To determine that the “Rocket Bunny Token”, “BoomBaby”, and “Matrix Samurai”, were not valid, she needed to be consistent in her disclosures.
💀💀💀 pic.twitter.com/N1qq8uoZnz
— Cobie (@cobie) April 14, 2022
Uniswap Announces a New Product
Less than 24 hours after the class action was filed, Uniswap Labs launch a Swap Widget feature to allow users to “seamlessly swap tokens anywhere across the web”. Access to the dApp can be made via Oasis and Open Sea.
1/✨ Today, we’re excited to announce the launch of the Swap Widget which allows users to seamlessly swap tokens anywhere across the web 🙌
Look for the widget already in your favourite apps @opensea, @FWBtweets, & @oasisdotapp pic.twitter.com/SzQ95t5sEs
— Uniswap Labs 🦄 (@Uniswap) April 14, 2022
The product is part of an Uniswap expansion initiative which is aim at providing “everyone” with access to “fair, open, and transparent markets”. The Widget is supposed to be easy to integrate by developers as it would only require “one line of code”.
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The Uniswap community reacted positively to the announcement. However, the DEX’s native token has trended to the downside, likely due to its correlation with Bitcoin and other larger cryptocurrencies.