Hex loses $500M in market cap after SEC lawsuit; token removed from MetaMask, Uniswap

Hex (HEX) marketplace headdress has dropped by astir $500 cardinal since the U.S. Securities and Exchange Commission labeled it information successful its suit against its founder, Richard Heart.

On July 31. the SEC charged Heart with conducting an unregistered securities offering with the issuance of HEX successful 2018. The suit named each of Heart’s crypto ventures, including HEX, PulseChain, and PulseX, describing them arsenic fraud.

The regulator further alleged that Heart committed securities fraud by utilizing investors’ funds to bargain luxury items.

Following the lawsuit, Hex’s marketplace headdress declined to arsenic debased arsenic $706 cardinal connected Aug. 2 from the $1.47 cardinal recorded erstwhile the suit was announced. However, the marketplace headdress has somewhat recovered to implicit $1 cardinal aft the HEX token rallied by much than 20% successful the past 2 days.

Pulsechain TVL dips, trading measurement soars

The suit besides affected the total worth of assets locked on its sister layer-1 web Pulsechain. The TVL fell by much than 50% from $327 cardinal connected July 31 to $136 cardinal connected Aug. 2, according to DeFillama data. Like the marketplace cap, the TVL has recovered to $206.43 cardinal arsenic of property time.

Source: DeFillama

Additionally, the trading measurement of decentralized exchanges (DEX) connected the Pulsechain web soared much than 300% to astir $300 cardinal since the lawsuit.

On Aug. 1, the time aft the SEC lawsuit, trading activities connected PulseX, the largest DEX connected the network, reached an all-time precocious measurement of $138.49 million. Since then, the DEX protocol has averaged much than $50 cardinal successful trades.

MetaMask and Uniswap Remove HEX

MetaMask and Uniswap (UNI), 2 of the biggest crypto platforms, person reportedly removed support for HEX transactions connected their platforms.

Some marketplace analysts suggested that the caller SEC enactment appears to person influenced their decision, perchance driven by a tendency to safeguard themselves from imaginable regulatory repercussions.

However, the improvement generated strong criticisms from the HEX assemblage and decentralization enthusiasts who questioned however “decentralized” these platforms were.

MetaMask and Uniswap were yet to respond to CryptoSlate’s petition for remark arsenic of property time.

The station Hex loses $500M successful marketplace headdress aft SEC lawsuit; token removed from MetaMask, Uniswap appeared archetypal connected CryptoSlate.