- The overall cryptocurrency market capitalization fell 3.6% overnight after the lawsuit news.
- PepeCoin (PEPE) had dropped by 14.9% since Monday as per CMC.
Following the filing of a new lawsuit by the United States Securities and Exchange Commission (SEC) against Binance, the overall cryptocurrency market capitalization fell 3.6% overnight, according to statistics compiled by CoinGecko.
The complaint claims that Binance and its CEO Changpeng Zhao breached the law by failing to prevent Americans from using their website, Binance.com, and by acting as an unlicensed exchange, broker, and clearing house in the crypto market.
Markets have dropped because Binance is so large; it hosts billions of trades and has tens of millions of monthly users. The price of Bitcoin (BTC) fell by 4.2%, while Ethereum (ETH) fell by 3.1%. Larger losses of 5%-15% were seen by altcoins, or cryptocurrencies other than Bitcoin, within the same time frame.
PEPE Bounces Back
Also, the famous frog-themed meme coin PepeCoin (PEPE) had dropped by 14.9% since Monday, making it the coin with the largest daily loss. However, at the time of writing prices of PEPE rebounded and is up by 13% in the last 24 hours as per CMC.
Several large cryptocurrencies, like PepeCoin, were among the top 10 losses. The SEC labeled the three metaverse tokens in the action against Binance as unregistered securities; these tokens are SAND, MANA, and AXS.
Moreover, Tether’s USDT saw a $12 billion boost in its market worth. There has been a significant risk-off shift away from high-risk altcoins since Bitcoin and Ethereum have had fewer losses than other heavyweights, while the supply of USDT has expanded. The outcome of this lawsuit will reshape the future of the crypto sector.