LDO’s Lido Dump 10% After Rumors Of Receiving Wells Notifications From SEC

Key points:

  • LIDO’s LDO notification code dropped sharply by 10% shortly after the rumor that SEC sent Wells notice warning to the Staking service.
  • Lido did not make any confirmation of whether this protocol received the Wells notice.
  • As the most extensive Staking ETH protocol in the market, rumors appeared, as well as silence from the protocol that caused panic in the community.
According to Coindesk, rumors are spread by the person who has a voice about cryptocurrencies David Hoffman (and then withdraws) the information that the SEC has sent Wells notice to Lido decentralized bet and all projects. DEFI and DEX. The information has caused LIDO’s LDO notification code to reduce the piece by nearly 10%.
LDO's Lido Dump 10% After Rumors Of Receiving Wells Notifications From Sec

On Saturday, a piece of information was strongly spread in the cryptocurrency community that the SEC silently sent Wells notifications to DEFI and DEX projects, the most extensive Staking ETH protocol in the market, Lido.

The Wells announcement is a letter from the sec detailing the fees they are considering against the recipient. Sending such a notice means that the regulator plans to start implementing the executive action for the company.

970x90.gif (970×90) Image Description

On Friday, Podcast’s David Hoffman on cryptocurrencies Bankless said that he had heard that Lido and other cryptocurrency projects were enclosed with Wells’s notice, a confirmation that he later withdrew again.

Information about the Wells notice is still rumors because the Lido spokesman refused to make any comments about whether the protocol received the Wells notice.

Lido, a liquidity betting platform, helps users to lock or start the notification code to make interest and enable the Ethereum blockchain security. As one of the most extensive Staking ETH protocols, Lido currently accounts for 31% of the total deposit Ether (ETH), according to Dune Analytics.

However, because of this silence, the community fell into a panic. LIDO’s LDO token dropped sharply by nearly 10% yesterday after the rumor spread throughout the Colorado hall in Ethenver, one of the gatherings – an essential cryptocurrency industry meeting of the year. This token has recovered but decreased by 6% in the past 24 hours.

LDO's Lido Dump 10% After Rumors Of Receiving Wells Notifications From Sec
24h LDO price chart. Source: CoinMarketCap

If this rumor is certified, it will significantly affect the Ethereum community and other decentralized bet services.

Andrew Thurman of the Nancysi cryptocurrency analysis company tweeted that Wintermute, one of the largest cryptocurrency market makers, sold about 10%, equivalent to $ 2 million, LDO shares. Thurman speculated that the sell-off was directly related to Wells’s rumors.

Earlier, Paxos, N Ha released Stablecoin Busd, which also received the SEC Wells notification. The report was the USD Binance as an unpaid stock. Next, New York’s Department of Finance Services (NYDFS) forced Paxos to suspend the Busd casting, one of the top stable currencies.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu


Coincu News