Lido and Rocket Pool tokens tank after SEC sues Consensys

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As a researcher with a background in cryptocurrencies and securities regulation, I find the recent turn of events surrounding Ethereum (ETH), Lido DAO (LDO), and Rocket Pool (RPL) quite intriguing. The sudden drop in their prices, following the US Securities and Exchange Commission’s (SEC) lawsuit against Consensys, is concerning.

The prices of Lido DAO (LDO) and Rocket Pool (RPL) have taken a significant dip on Friday. At present, LDO is experiencing a decline of 15%, while RPL is down by 10%. These price drops follow the market’s response to recent regulatory news.

The price of Ethereum (ETH), along with Maker (MKR), Uniswap (UNI), and Arbitrum (ARB), experienced a significant decrease, approximately 3% for ETH. This downturn can be linked to the US Securities and Exchange Commission (SEC) filing a lawsuit against Consensys, the Ethereum software firm that manages MetaMask crypto wallet.

SEC sues Consensys after ending Ethereum 2.0 investigation

The SEC’s findings from its investigation into Ethereum 2.0 imply a potential shift in the regulatory body’s perspective towards this altcoin. Noteworthy is the fact that in early May, the SEC granted approval for listing spot Ethereum ETFs on the US market.

As a crypto investor, I can’t help but feel a sense of unease despite recent positive developments. The shadow of regulatory uncertainty still looms large over Consensys, with the Securities and Exchange Commission (SEC) having served them a Wells Notice. This means that enforcement action is a possibility, and the SEC has made it clear that they have concerns regarding MetaMask, Consensys’ popular crypto wallet and staking service platform.

Lido and Rocket Pool prices plummet

Lido (LDO) and Rocket Pool (RPL) are two Ethereum-connected cryptocurrencies that experienced growth in value over a few days, bucking the trend of the overall market downturn. This surge came following Consensys’ announcement that the Securities and Exchange Commission (SEC) had concluded its investigation into Ethereum 2.0.

The price of LDO surged from approximately $1.85 to reaching peaks of $2.40, fueled primarily by Ethereum’s significant victory. Simultaneously, RPL experienced a substantial increase from $26.50 to above $30.00 due to this news event combined with other favorable factors that boosted the altcoins’ upward momentum.

What the SEC said about Lido and Rocket Pool

As a crypto investor, I’d put it this way: The Securities and Exchange Commission (SEC) has brought charges against ConsenSys in the Eastern District Court of New York, claiming that I, ConsenSys, violated federal securities laws. Specifically, we allegedly failed to register as a broker dealer and offered unregistered securities for sale.

According to the SEC’s complaint, Consensys has provided and transferred tens of thousands of securities for the account of both Lido and Rocket Pool.

The Securities and Exchange Commission (SEC) has pointed out that by participating in Lido and Rocket Pool staking activities using Ethereum (ETH), investors are essentially anticipating gains. These profits, however, are not solely reliant on the investors but also depend on the managerial efforts of these two protocols.

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2024-06-28 22:42