Uniswap (UNI): Why the Future Appears Shaky despite Impressive Growth
A renowned cryptocurrency journalist Colin Wu tweeted about Uniswap Labs’ growth recently. Wu stated that Uniswap became Polygon’s decentralized exchange with the highest trading volume the previous month, controlling nearly half of market shares, despite launching three months ago.
Messari introduced a quarterly report after UNI completed the 2022 QI, reflecting on the protocol’s success. Though market liquidity declined throughout 2022 Q1, Uniswap had its scaling solutions shining at the time. Meanwhile, Polygon climbed by 81.7% from the 2021 Q4 end.
Also, the report highlights the impressive Polygon liquidity growth despite liquidity mining incentives’ absence. Remember, the Polygon team had $15 million set aside for liquidity mining plus another $5 million to back the ecosystem. The team is yet to implement any of these.
The info-graphic above shows the continued expansion of Uniswap trading markets since the past quarter. The growth is visible in all products, from UNI’s non-ETH networks to V2 on Ethereum. It comes regardless of the colossal crypto market crash that started in late 2021 November. The report finalized that all data shows Uniswap found a new home in the Polygon ecosystem.
Uniswap Prosecuted for Alleged Misconduct
Uniswap protocol has a class-action suit filed against it. The lawsuit alleges the exchange allows unlawful advertisement. It also offers and sells cryptocurrencies as unregistered securities. The complaint revealed that Uniswap doesn’t have entry barriers for investors looking to swap or trade digital coins on the crypto exchange. The platform has no individual identity verification. Also, users do not complete the KYC process, leading to flourishing fraud. It added Uniswap drawn around $1 billion from customers for token issuers to continue profiting from the deceitful conduct.
Another allegation stated that Uniswap sold uncertified securities in the US without registering as a securities exchange or broker-dealer. Moreover, the platform did not have recordkeeping statements for the sold tokens, a move that violated the applicable law.
The case has Uniswap Labs’ future undecided. Lawsuits have historically triggered bearish tendencies in the crypto space regardless of the tokens’ performance. It may take weeks before UNI reveals a significant price forecast in the future.
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