Algorand (ALGO) and Flow (FLOW) Hit Record Lows Following SEC’s Security Classification

Blockchain projects Algorand (ALGO) and Flow (FLOW) have hit new all-time lows after being classified as securities by the U.S. Securities and Exchange Commission (SEC).

Algorand (ALGO) and Flow (FLOW) Hit Bottom After SEC Security Classification

On June 10, both Algorand (ALGO) and Flow (FLOW) plunged to new all-time lows, with ALGO dropping to $0.098 and FLOW falling to $0.046, marking a 30% decline over the past week.

As of now, ALGO has rebounded approximately 13% to around $0.10.

4-hour Chart of ALGO/USDT on Binance as of 10:20 AM, June 12, 2023

Similarly, FLOW has seen a recovery of about 11%, climbing back to $0.048.

4-hour Chart of FLOW/USDT on Binance as of 10:20 AM, June 12, 2023

As reported by Coin68 last week, the crypto market was shaken by lawsuits targeting the major exchanges Binance and Coinbase, labeling numerous major tokens as unregistered securities.

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Following these aggressive actions from the SEC, development teams behind Solana (SOL), Cardano (ADA), and Polygon (MATIC) have all pushed back against the SEC’s claims, asserting that their tokens are not securities.

Despite their efforts to reassure the community, these projects have been unable to mitigate the severe bearish sentiment affecting their token prices.

Previously, popular U.S. investment app Robinhood announced it would delist these three tokens by the end of June to avoid legal issues with the SEC. Recently, a proposal even emerged to fork SOL in response to the increasingly tense regulatory environment.

Additionally, several major organizations and investment funds have begun to withdraw from the U.S. market, including investment fund Animoca Brands and exchange Crypto.com.