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- The total cryptocurrency market capitalization decreased by 3.6% overnight following the lawsuit announcement.
- PepeCoin (PEPE) experienced a decline of 14.9% since Monday according to CMC.
In the wake of a new lawsuit filed by the United States Securities and Exchange Commission (SEC) against Binance, the total cryptocurrency market capitalization saw a 3.6% drop overnight, based on data from CMC. However, the market has since recovered, showing an increase of 2.87% as reported by CMC.
The lawsuit alleges that Binance and its CEO Changpeng Zhao violated regulations by not preventing U.S. residents from accessing their platform, Binance.com, and by operating as an unlicensed exchange, broker, and clearinghouse in the cryptocurrency space.
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The market downturn was influenced by Binance’s significant size; it facilitates billions of trades and serves tens of millions of users monthly. Bitcoin (BTC) saw a price decline of 4.2%, while Ethereum (ETH) dropped by 3.1%. Other cryptocurrencies, known as altcoins, experienced larger losses ranging from 5% to 15% during the same period. At the time of this report, Bitcoin and ETH prices have recovered and are trading positively. Additionally, many altcoins have reversed their trends and are also in the green.
PEPE Bounces Back
Furthermore, the well-known frog-themed meme coin PepeCoin (PEPE) had fallen by 14.9% since Monday, marking it as the coin with the most significant daily loss. Nevertheless, at the time of this report, PEPE prices have bounced back, showing an increase of 13% in the last 24 hours according to CMC.
Several major cryptocurrencies, including PepeCoin, were listed among the top 10 losses. The SEC identified three metaverse tokens in its action against Binance as unregistered securities; these tokens include SAND, MANA, and AXS.
Additionally, Tether’s USDT experienced a $12 billion increase in its market capitalization. There has been a notable shift away from high-risk altcoins, as Bitcoin and Ethereum have sustained fewer losses compared to other major cryptocurrencies, while the supply of USDT has grown. The outcome of this lawsuit is expected to significantly influence the future landscape of the cryptocurrency industry.
