Lido Finance (LDO) altcoinits price fluctuated after the US Securities and Exchange Commission (SEC) was rumored to have sent the Wells Notice to this staking service.
Lido spokespersons did not comment on whether the platform received such a notification.
David Hoffman Said That Wells Notice Was Sent To Some Altcoin Platforms Including Lido (LDO)
The Wells Notice is a letter that details the charges the SEC is considering bringing against a buyer. On Friday, Bankless cryptocurrency David Hoffman from his podcast said he had heard of Wells Notices being sent to Lido and other crypto projects, but later retracted that claim.
But the rumor caused panic on Twitter and quickly spread to the Colorado convention hall, where ETHDenver, one of the biggest crypto industry meetings of the year, was held. If the rumors prove to be true, it could be argued that the SEC has stepped up its scrutiny on Ethereum and crypto staking.
On Friday, Hoffman said in a video post that “many Wells notices” had been distributed over the past week, adding, “I think Lido got one too.” Shortly after the video went viral on Twitter, Hoffman took a step back.
Hoffman said that at least one platform sent a Wells Notice, but not a mass submission.
It is unclear how the SEC will notify Lido. This staking service is technically operated by the Lido DAO (decentralized autonomous organization), meaning it is managed by a large network of Lido’s LDO token holders and lacks a formal leadership structure.
*Not investment advice.
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