Many users of cryptocurrencies have complained that they are no longer able to trade the meme coin Ben (BEN) on Uniswap, one of the largest decentralized exchanges (DEX) in the cryptocurrency market at the moment. However, only the DEX website interface (front-end) restricts users from transacting. For standard transactions, a connection to the token’s smart contract is still possible.
New Move by Uniswap: Trading of Derivative Tokens and Meme Coins Restricted
The DEX has censored several tokens, including meme coins like Ben (BEN), Grump Cat (GRUMP), Gucci (GUCCI), and others, as well as some cryptocurrencies impersonating projects like DYDX and ENS DAO. Moreover, a series of derivative tokens from popular cryptocurrencies like BTC and ETH, as well as real-world assets and stock indices, have drawn particular attention was the restriction.
Criticism of Uniswap Harsh
Nevertheless, a few investors criticized Uniswap for blocking meme coins like BEN even though there was no legal issue. Others even claim that the DEX goes against the decentralized nature of the network. On the other hand, powered by an endorsement from crypto-celebrity Ben Armstrong, who acquired ben.eth for an undisclosed amount, BEN rewarded its early investors on May 8 with a more than 5,000% one-day rise.
Why might Restriction be Happening?
Many believe that Uniswap maintains this block list to stay out of trouble with the law in the United States, where the exchange registered the company, and where it is registered. With the justification that securities are being used, the US financial authorities, primarily the Securities and Exchange Commission (SEC), have previously frequently initiated legal action against numerous cryptocurrency efforts. Therefore, an outright ban on US exchange-related derivative tokens by the DEX is reasonable at some level.