Key Takeaways:
- Polygon Labs shared a post responding to the SEC’s latest attack on cryptos.
- MATIC price recovered slightly from the Robinhood delisting-led drop.
PATNA (CoinChapter.com) — Layer-2 scaling solution Polygon broke its silence on the recent litigations by the US Securities and Exchange Commission against the crypto sector.
The SEC listed MATIC, the native token of Polygon, as one of the unregistered securities it alleged Coinbase and Binance were selling. The fallout of the allegation resulted in Robinhood delisting MATIC, along with SOL and ADA, from its platform, citing an “internal review.”
MATIC price was caught in the resulting FUD, with the token losing 30% of its value in less than 24 hours on June 10. The blockchain platform broke its silence on the issue on June 11, stating that the Polygon Network was “proud” of its history.
The L2 scaling platform noted that the SEC’s litigation would not impact its operations much since Polygon remained outside the regulator’s decision.
[Polygon has been] developed outside the US, deployed outside the US, and focused to this day on the global community that supports the network
Polygon noted in its statement.
Moreover, the blockchain network noted that the team ensured its actions did not undermine US laws. Polygon accepted that it “made sure MATIC was available to a wide group of persons..”
However, the platform claimed that the distribution of MATIC was necessary for its network security.
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Furthermore, Polygon stated that it was not fazed by the SEC’s actions since the global or “non-US” market presented a much bigger opportunity for growth than the US. The Ethereum-scaling platform appreciated the work done globally by non-US regulators and policymakers.
Interestingly, Polygon promised users “exciting tech announcements” in the coming week.
MATIC Price Recovers, But Bearish Pressure Remains
Polygon followers welcomed the statement, with MATIC price capitalizing on the resulting enthusiasm to recover slightly on June 11. However, the number of daily active addresses dropped to its lowest level in over 12 months.
Per data from Tokenterminal, the number of daily active users on the Polygon network plummeted by nearly 92% in under 24 hours from June 10’s 359,105 addresses. The Robinhood delisting news was the likely reason for the drop in prices.
Meanwhile, MATIC price remained volatile on June 11, spiking nearly 8% to reach a daily high near $0.639 before bears pared gains, indicating the bearish pressure against the token. If the downtrend continues, the Polygon token price might drop to its support near $0.59.
Moreover, failure of the immediate support level could push MATIC price to test support near $0.53 before recovering.
The relative strength index for the Polygon token remained oversold, clocking at 19.77 on the daily charts. However, the RSI trendline started moving upward following the minor recovery on June 11.
If the bulls manage to keep the rally alive, MATIC price might rise to the resistance near $0.66. Breaking and consolidating above the immediate resistance level could help the Polygon token target resistance near $0.74 before correcting.
The post Polygon Responds To SEC And Robinhood, Promises New Announcements Soon appeared first on CoinChapter.
