DeFi Faces a Crisis of Confidence: Token Examination, Tether’s Rating Cut, and Intensified SEC Crackdowns Converge
- Edel Finance's token launch faces scrutiny as 160 linked wallets allegedly acquired 30% of its supply pre-launch, triggering a 62% price drop. - Tether's S&P downgrade to "weak" highlights risks from $12.9B gold and $9.9B bitcoin reserves, with gold holdings rivaling central banks. - SEC intensifies oversight, fining Yida Gao $4M for crypto fund misrepresentation while exchanges warn against crypto exemptions. - DeFi projects like World Liberty Financial spend $10M on token buybacks, yet WLFI remains dow
Ethereum's DeFi sector continues to face close examination as recent findings raise issues about token allocation methods and regulatory hurdles. A new report from
Regulatory scrutiny is intensifying as the U.S. Securities and Exchange Commission (SEC) ramps up its enforcement efforts.
On the other hand, certain DeFi protocols are testing buyback initiatives to restore investor trust.
As the cryptocurrency industry contends with regulatory headwinds and internal governance issues, openness and equitable distribution remain essential for rebuilding confidence.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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