Cryptocurrency prices took a hit yesterday as the SEC declared that it considers certain major altcoins, such as Solana (SOL) and Polygon (MATIC), to be securities.
This revelation came during the filings for the SEC’s lawsuit against Kraken, alleging that it’s acting as an unregistered exchange.
This article explores what this could mean for SOL and MATIC before discussing three potential coins that may stand to benefit if investors begin looking for alternatives.
Solana & Polygon Dip After SEC’s Kraken Lawsuit Deems Them Securities
The SEC’s decision to characterize major altcoins Solana and Polygon as securities has sent shockwaves through the crypto market.
On the news, SOL’s price plunged over 8%, slipping below $60, while MATIC dropped nearly 7% to under $0.80.
By considering these assets as securities, the SEC is essentially saying that it plans to subject them to stringent regulations usually reserved for stocks, bonds, and other traditional investment vehicles.
This could restrict the future development and adoption of Solana and Polygon if their foundations are required to comply with strict reporting rules.
Notably, this isn’t the first time the SEC has claimed Solana and Polygon are securities.
In June, the SEC filed a lawsuit against the crypto exchange Binance, claiming SOL, MATIC, and BNB were securities.
Both the Solana Foundation and Polygon Labs disagreed with the SEC’s characterization.
Regardless, the broader implications for the crypto industry could be significant, as this could set a precedent for how other coins and tokens are classified in the future.
Which Alternative Altcoins Should Traders Consider?
With the price of SOL and MATIC plunging, traders may be seeking alternative altcoins with more regulatory clarity.
Presented below are three leading options that crypto enthusiasts may wish to explore:
1. Bitcoin ETF Token (BTCETF)
First up is Bitcoin ETF Token (BTCETF), which seeks to allow traders to speculate directly on the market impacts of a spot Bitcoin ETF being launched in the US.
The token has a deflationary mechanism built-in, with 5% of the initial supply set to be burned upon key milestones in the ETF approval process being reached.
These include dates for ETF approval announcements, the first ETFs going live for trading, and trading volume thresholds being hit.
Additionally, BTCETF has a built-in sell tax applied every time an investor sells their tokens.
This tax starts at 5%, although it will decrease as real-world ETF milestones are hit – eventually reaching 0%.
As more of the supply is removed from circulation, the thesis is it will increase the value of the remaining BTCETF tokens for holders.
Bitcoin ETF Token has already begun raising funds and awareness, bringing in over $1.2 million so far during its presale.
More than 2,400 people have joined Bitcoin ETF Token’s Telegram community, indicating a strong initial interest in the project.
BTCETF has even been ranked first on CoinSniper.net, a popular platform for tracking upcoming crypto launches.
With a spot Bitcoin ETF set to change the crypto landscape, Bitcoin ETF Token looks well-positioned to capitalize on the buzz surrounding such a huge event.
Visit Bitcoin ETF Token Presale
2. Avalanche (AVAX)
Another altcoin that investors may wish to consider is Avalanche (AVAX), an extremely fast blockchain that competes with Ethereum.
Avalanche can reportedly process 4,500 transactions per second, giving it powerful scalability advantages over most chains.
Recently, JPMorgan tested tokenized portfolios on Avalanche and other chains, showing growing institutional interest.
Meanwhile, the network has seen surging activity, with the daily token burn rate skyrocketing since early October.
With the price of AVAX up over 140% since last month, the bullish momentum has aligned with these positive developments.
The chain’s speed and interoperability have proven to be a key selling point for developers, leading to a wave of exciting decentralized applications (dApps) being built.
With fundamental and technical factors pointing in the right direction, AVAX is another exciting altcoin to watch as Solana and Polygon battle against the SEC.
3. Blur (BLUR)
Lastly, Blur (BLUR) is an under-the-radar crypto project that could offer an intriguing alternative to SOL and MATIC.
Blur operates a fast-growing NFT marketplace built for professional traders, offering unique order batching and other advanced features.
The Blur ecosystem even has a lending protocol called Blend, which allows users to borrow Ethereum and use their NFTs as collateral.
Transaction volume data has shown consistent activity on Blur, even as the broader NFT hype has declined.
Recent positive price action for the BLUR token also stands out – the token rallied over 209% in October and early November to reach a high of $0.47.
This briefly pushed BLUR into the top 100 cryptocurrencies by market cap, although the token is ranked 29th when measured by daily trading volume.
As an alternative to troubled coins like SOL and MATIC, Blur presents intriguing use cases at an early stage of adoption, making it ideal for traders seeking hidden gems in the market.
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The project in the above article is not related to Bitcoin or to a Bitcoin ETF. It’s a completely different token.
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