Uniswap, the largest decentralized exchange, has removed the HEX token from its interface aft it was precocious declared an unregistered information by the United States Securities and Exchange Commission (SEC). This comes arsenic different stroke for the token successful what has been an unpleasant week truthful far.
This unfavorable tally has had an interaction connected the terms of HEX, which is presently valued astatine $0.00486457. According to CoinGecko data, the token’s terms has declined by much than 12% successful the past day, arsenic it continues successful a downward trend.
Uniswap Withdraws Support For “Unregistered Security” HEX
Uniswap has delisted the HEX token from its interface, placing it successful the protocol’s “Unsupported List.” It is simply a database manually curated by Uniswap Labs – the developer of the protocol – to restrict tokens that interruption trademarks, projects that person proven to beryllium scams, oregon different based connected ineligible considerations.
Following the SEC’s declaration connected Monday, July 31, it appears that Uniswap is distancing itself from the HEX token. This declaration came erstwhile the fiscal regulator filed a suit against Richard “Heart” Scheuler, the laminitis of HEX, PulseChain, and PulseX (a Uniswap fork).
In the court document, the Securities and Exchange Commission mentioned Uniswap arsenic 1 of the factors down its enactment of the US District Court for the Eastern District of New York arsenic the case’s venue.
The committee said it chose this venue due to the fact that galore of the transactions highlighted successful the suit occurred connected Uniswap, which is headquartered successful Brooklyn, New York.
The SEC accused the arguable Richard Heart of offering an “unregistered security”, the HEX token. Other angles of the lawsuit see HEX’s staking mechanism, its lock-up schedule, and however Heart manipulated the token’s proviso by “recycling” transactions.
The regulator claims that, by making “grandiose” promises of wealth, Heart was capable to rise $1 cardinal from investors, which helium “inappropriately” spent connected luxury goods.
The Crypto Community Reacts
After the quality of Uniswap blocking traders from trading the HEX token broke out, determination has been a mixed absorption from the crypto assemblage connected Twitter.
Several tweets are questioning the “decentralized” quality of Uniswap, with immoderate users adjacent going arsenic acold arsenic giving the protocol a atrocious reappraisal connected assorted reappraisal platforms.
Uniswap conscionable halted Hex trading
I thought this was DeFi pic.twitter.com/oB7av4a9gB
— TrevonJames.eth 
(@TrVon) August 2, 2023
However, immoderate Twitter users believe that Uniswap made the close call, arsenic they consciousness the SEC’s lawsuit against Richard Heart is plausible.
Although Uniswap has removed HEX from its beforehand end, it appears that it tin inactive beryllium traded connected the decentralized speech done alternate hosted websites.
A Twitter idiosyncratic revealed that determination are galore Uniswap beforehand ends – created by members of the HEX assemblage – to commercialized the delisted token oregon to interact straight with the protocol’s astute declaration to bash so.
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