Decentralized Finance (DeFi) has emerged as one of the hottest sectors in crypto, attracting institutional investors. The likes of Uniswap, Maker, and Galaxy Fox have emerged as some of the best cryptos to invest in today.
Amidst this growth, David Hirsch, the head of the Security and Exchange Commission’s (SEC) Crypto Assets and Cyber Unit has emphasized the agency’s commitment to regulating DeFi. How will SEC regulation affect these three booming DeFi protocols?
How will Uniswap be affected by SEC’s proposed regulation?
Uniswap has solidified its position as the biggest decentralized exchange (DEX) in the crypto space. The SEC has gone after centralized exchanges (CEXs) like Binance and Coinbase. The regulatory agency has proposed to expand its reach and regulate the Uniswap exchanges like other CEXs.
The securities laws will then apply to Uniswap and other DEXs. However, industry experts have argued that the likes of Uniswap don’t have the centralized management systems to be regulated as a security exchange. While the Uniswap coin initially struggled because of regulation, it has seen some recovery. The problem remains, however, that (unlike Bitcoin, which is censorship-resistant), Uniswap relies on a website that could, theoretically, be shut down if the SEC decides to take action against it. This would have a disastrous effect on the value of $UNI, sending it into a sudden death spiral.
For the moment, however, on the monthly Uniswap price chart, it has recorded a 25% increase. This has taken the price of Uniswap above the $5.20 level. If the bullish momentum is maintained, the price of Uniswap will look to break above resistance levels at $5.5 and $6.0. Changelly has predicted a rally above this level before the year ends.
How Maker will be affected by the proposed regulation
Maker is one of the oldest decentralized lending and borrowing platforms. Meanwhile, MKR is the main utility and governance token DAO governing the DeFi platform. Despite not offering exchange services, the proposed regulations would also mean that Maker is regulated as a security exchange.
However, the Maker coin has not been affected by this proposed regulation. Year to date, the Maker price has increased by more than 100%. As a result, MKR was ranked as one of the best crypto to invest in. However, in November the price of MKR dropped from $1,570 to trade at $1,360.
Lookonchain reported that the recent price increase was a result of an increase in transactions. FalconX transferred $12.8 million worth of MKR tokens to centralized exchanges in the last week of October. The price of MKR shrank as the institutional interest in the token declined.
How will Galaxy Fox be affected by the proposed regulation?
Like every other DeFi platform, Galaxy Fox would be affected by the proposed regulations of the SEC. Galaxy Fox is an exciting new addition to the DeFi space as it combines play-to-earn mechanics with meme culture. The game is built around special NFTs engaging in an intergalactic battle.
After choosing their own unique Foxes for the fascinating web-3 game, players will go on an incredible trip where they will gather, care for, and fight other players in exciting combat. In-game items and $GFOX tokens will be given to the best players in recognition of their abilities and accomplishments.
An NFT marketplace within the ecosystem will let users trade some of the coolest NFTs, and purchase and exchange their digital assets for actual money. It will also offer a Galaxy Fox Merchandise store where network users can find captivating products, with profits funding the treasury for sustainability. Despite the ongoing pressure, Galaxy Fox ($GFOX) has continued to grow.
The project has just notched a new milestone, raising over $100,000 in its beta crypto presale stage. Investors can still join one of the best ICOs as $GFOX only trades at $0.00066 per token. With the promise the platform has shown, analysts have projected a 40x price surge, making $GFOX one of the best crypto to invest in for maximum gains.
To learn more about Galaxy Fox ($GFOX), Visit Galaxy Fox Presale | Join The Telegram Group | Follow Galaxy Fox on Twitter.
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