This makes the chain highly centralized and causes it to meet the criteria of the SEC’s Howey Test (the test they use to determine if something is a security). The issue is that Polygon’s main product, its legacy PoS chain is a permissioned chain with just one hundred selected validators. Polygon has multiple products, including a legacy Proof-of-Stake (PoS) Ethereum side chain, a zero-knowledge Ethereum Virtual Machine rollup and more. The main issue regarding the SEC’s lawsuit is Polygon’s high degree of centralization. The SEC classing Polygon as a security means we are unlikely to see any parabolic growth for the crypto this year. MATIC has decreased 25% in the last month following the SEC suing Binance and Coinbase.Currently, MATIC is down 77% from its ATH.The coin reached an ATH of $2.92 on 27 December 2021. MATIC began trading at $0.004418 following its exchange launch.Polygon launched in 2019 with a Binance ICO priced at $0.00263.That said, it is likely lots of this fear is already priced into the recent collapse in price. This has caused fear in the coins’ communities since the extra sell pressure could harm their prices. Unfortunately for Polygon, it was one of the cryptos named a security by the SEC.Īdding fuel to the fire, Robinhood has announced it will delist Polygon, Cardano and Solana, liquidating any of the coins left on its exchange on 27 June. This is because the SEC has sued Binance and Coinbase for selling unregistered securities. In the last month, Polygon has seen a significant selloff, down 25%. Since then, the coin has recovered to $0.6452 but is still down 77% from its ATH. The price reached support of around $0.689 in July 2021 before climbing steadily to its ATH of $2.92 on 27 December 2021.Īfter its ATH, a crypto bear market ensued, causing MATIC to drop to lows of $0.3466. This was due to gas fees increasing on the Ethereum network and the narrative above layer two scaling solutions picking up.įollowing this, MATIC followed a strong upwards trajectory, reaching $2.44 in May 2021 before correcting. However, in January 2021, as the broader market began to pick up, MATIC exploded above $0.1. Until 2021, the MATIC price remained relatively flat, trading at just a few cents. According to CoinMarketCap, the initial launch price after its ICO was $0.004418. The coin’s roots are in the Binance exchange, where it underwent an ICO in 2019 at a price of $0.00263. Polygon was created in 2019, originally under the name of Matic.
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