Polygon Responds to SEC's Claim of MATIC Being a Security

Polygon Labs has responded to the SEC's claims that its native token MATIC is an unregistered security. The US SEC last week labelled Polygon and other popular cryptocurrencies unregistered securities in a lawsuit filed against crypto exchange Binance.

Timeline of Polygon

The Securities and Exchange Commission's (SEC) recent crackdown on major crypto exchanges such as Coinbase Inc (NASDAQ:COIN) and Binance has had a wide-reaching impact on various cryptocurrencies. In response to the SEC's increased scrutiny, some exchanges like Robinhood Inc (NASDAQ:HOOD) have even gone so far as to delist certain tokens, including Polygon (CRYPTO: MATIC).

Amidst a notable price drop, blockchain data reveals that key market makers, Jump Trading and Cumberland, sent millions of dollars worth of Polygon (MATIC) to various crypto exchanges on Friday night. Analytics firm Lookonchain reported the transactions, stating that Cumberland deposited 9 million MATIC, valued at over $6.

MATIC is currently facing increased uncertainty as it has been officially classified as a security by the US Securities and Exchange Commission, as revealed in the recent filing against Binance. Consequently, the Polygon blockchain token experienced a significant drop of 31% within a week, setting a new record.

Polygon Price Analysis: Amidst the increasing bearishness in the crypto market, the polygon coin price witnessed an aggressive downfall within a fortnight. From the peak of $0.995, the coin price tumbled 45.4% to hit the psychological support of $0.509-$0.5.

The Solana Foundation has rejected the U.S. Security and Exchange Commission's (SEC) classification of its SOL token as a security. Polygon Labs also shared this sentiment, stating that they developed and deployed MATIC outside the U.S.

Introduction This report provides a comprehensive analysis of Polygon (MATIC)'s price dynamics on Binance, covering technical indicators, moving averages, pivot points, and more. Price and Volume Snapshot At the time of the report, Polygon (MATIC) was priced at $0.601, experiencing an increase of $0.010 (+1.67%) compared to the previous period.

Polygon's response to SEC litigations has sent waves through the market. As MATIC sentiment rises, network growth falters, but upcoming tech announcements offer hope for the future.

Polygon Labs remains confident in their past actions and focused on building in the future despite MATIC's recent delisting. They are grateful for global support and have exciting tech announcements coming up soon.

Unraveling the recent plummet in Polygon's price reveals a confluence of regulatory crackdowns, exchange upheavals, and market maneuvers contributing to a perfect storm. The cryptocurrency, known by the ticker MATIC, has witnessed a massive fall in its value, sliding by 25.54% in the last 24 hours and by 37.35% over the past week.

ZkEVMs, i.e., EVM-equivalent Ethereum (ETH) scaling networks on zero-knowledge proofs (ZKPs), are in the spotlight for the global crypto community as they can change the game in programmable blockchains forever.