DeFi users have discovered that Uniswap DEX exchange is banning various memecoins and crypto derivatives.
Many crypto users have reported that they can no longer trade memecoin Ben (BEN) on Uniswap, the largest decentralized exchange (DEX) in the crypto business today.
It may be due to legal concerns that Memecoins such as Ben (BEN), Grump Cat (GRUMP), Gucci (GUCCI), etc. are censored by the DEX, as well as some projects impersonating cryptocurrency such as DYDX and ENS DAO, and most notably a range of tokens derived from both major currencies like BTC, ETH as well as stock indices and real assets.
Even so, some investors have chastised Uniswap for banning “hot” memecoins like BEN in the absence of a legal lawsuit. Others have even said that the DEX is working contrary to the decentralized nature of the platform. On May 8, BEN rewarded its early investors with a gain of more than 5,000% in a single day, thanks to an endorsement from crypto celebrity Ben Armstrong, who eventually bought back ben. eth for an undisclosed price.
Many argue that Uniswap keeps this block list to avoid legal problems in the United States, where the Exchange has registered the company. U.S. financial authorities, especially the Securities and Exchange Commission (SEC), have repeatedly pursued regulatory action against various cryptocurrency initiatives in the past. Therefore, it makes sense for the DEX to forcefully ban derivative tokens linked to the US stock market.
Uniswap and several other DeFis such as Balancer and Aave, have banned addresses associated with Tornado Cash, the Ethereum trading mixing site blacklisted by the US Department of Justice. Users from sanctioned countries are prohibited from using OpenSea and Infura.