At 15 billion euros, Uniswap’s market capitalization is now in the range of well-known European banks or large, international stock exchanges. This has now brought the US Securities and Exchange Commission to the scene, which is targeting the company behind the coveted UNI token, Uniswap Labs. This is currently reported by the Wall Street Journal.
Uniswap has become known and popular because it brought the basic principle of the blockchain – i.e. decentralization – into the exchange business and thus represents a counterpoint to centralized crypto exchanges such as Binance, Huobi or Kraken. But how decentralized is Uniswap really, and what role does Uniswap Labs from New York play around founder Hayden Adams?
Uniswap: Decentralized exchanges come into the spotlight
Cooperation with supervisory authorities
The subject of the investigation by the powerful SEC is, among other things, how investors use Uniswap and how Uniswap is marketed. The outcome of the matter is uncertain – in any case, it is certain that the SEC has paid more attention to crypto projects and companies in recent months and years – with huge fines for companies like BitConnect, Block.one or Poloniex as well as lawsuits against Ripple.
“We undertake to comply with the laws and regulations applicable to our industry and to provide the supervisory authorities with information that will support them in their investigations,” says Uniswap Labs currently on the subject. The big question now is whether the company can even be held responsible for processes on the decentralized platform and whether it is an intermediary similar to an operator of a traditional exchange.
“The Uniswap protocol is managed by a decentralized community of UNI token holders and their delegates who propose and vote on upgrades for the protocol,” the website says. Even if Uniswap is very cautious, the company is already insisting on the rights to use the brand name. In view of the rapid increase in the UNI token, it is an exciting question how the company indirectly benefits from brand awareness and from the tokens – and thus also the investors Andreessen Horowitz, Paradigm Venture Capital, Union Square Ventures and ParaFi.
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