Leading decentralized exchange Uniswap announced yesterday (5th) on the X platform that it has officially launched the Candlestick chart feature.
Summary:
Is it a good time to buy UNI now? Uniswap plummeted 20% after receiving a warning lawsuit from the SEC. What can we learn from history?
Background:
Opinion: SEC plans to file an impossible lawsuit against Uniswap Labs.
Table of Contents:
UniswapX launched last month, V4 version expected in Q3 this year
Uniswap receives SEC Wells Notice
Which other crypto companies have received SEC Wells Notices?
Leading decentralized exchange Uniswap announced yesterday (5th) on the X platform that it has officially launched the Candlestick chart feature.
To use the Candlestick chart feature, users can first click “Explore” on the Uniswap platform, then click on the desired token to observe, and then switch the chart type from “Line chart” to “Candlestick” in the lower right corner of the chart.
Additionally, in July last year, Uniswap planned to launch the UniswapX protocol, a non-custodial, Dutch auction-based protocol, which was officially launched last month. It will help users gradually achieve on-chain trading experiences such as aggregated liquidity, anti-MEV, and gasless transactions that can rival centralized exchanges (CEX).
Currently, users can experience the “zero gas” and “anti-MEV” on-chain trading experiences brought by UniswapX on the Uniswap web application. However, due to the early stage of the product and the current market’s focus not being on the Ethereum ecosystem, the discussion and usage intensity of UniswapX are relatively low.
On the other hand, in mid-February, Uniswap announced that Uniswap V4 is tentatively scheduled to be launched on the Ethereum mainnet in the third quarter of 2024. Furthermore, the v4 version will go through three stages before its launch:
Phase 1: Code freeze
Core code completion, testing, gas optimization, security enhancements, and finalization of minor parts.
Note: “Code freeze” refers to a stage in the software development process where the protocol’s code is fixed and no major changes are made. During this stage, the development team stops adding new features or modifying existing features of the protocol to ensure its stability and reliability.
Phase 2: Audit and testnet
Comprehensive audits by multiple auditing firms and community auditing competitions will be conducted during this period. At the same time, v4 will be deployed to testnets and the code will undergo final adjustments.
Phase 3: Mainnet launch
v4 is expected to be launched on the Ethereum mainnet in the third quarter.
According to a tweet by the Uniswap Foundation in April, Uniswap v4-core (PoolManager) is about to enter the code freeze period, and the deployed v4 version features will be considered as complete code, with no additional features or rebuilds. At the same time, after the code freeze, it will enter the second phase: audit and testnet.
Although Uniswap has made progress in terms of application functionality, last month, Uniswap founder Hayden Adams tweeted on the X platform that he had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) and may face litigation.
However, it is worth noting that receiving a Wells Notice from the SEC does not necessarily mean that a formal lawsuit will be filed. The typical process after receiving a Wells Notice is as follows:
1. The SEC issues a warning to individuals or companies after the investigation into a suspicious company is completed.
2. After receiving a Wells Notice, the company has 30 days to refute the allegations and present arguments to prove its innocence.
3. After submitting the notice, the SEC has 6 months to decide whether to file a lawsuit and take enforcement action.
Ripple Labs: In December 2020, the SEC charged Ripple and its two executives with selling securities without registration, leading to the immediate delisting of XRP from Coinbase.
(SEC litigation)
Coinbase: In March 2023, the SEC sent a Wells Notice to Coinbase, causing the company’s stock price to drop by over 15% after-hours and protests continuing.
(SEC litigation in June)
“Paxos,” the issuer of the formerly third-largest stablecoin BUSD, received a Wells Notice in February 2023. Shortly after, Paxos terminated its partnership with Binance on BUSD.
(The New York Department of Financial Services ordered Paxos to stop minting new BUSD)
Although receiving a Wells Notice does not guarantee that a company will be sued by the SEC, based on past experiences, the likelihood of SEC litigation is not low, especially in the field of cryptocurrency, where companies often proceed to civil litigation, and many ultimately choose to settle and be done with it.
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