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Recent events in the crypto world are not just about wild price swings. What truly causes unease is the ongoing pressure from regulators. The U.S. Securities and Exchange Commission (SEC) has been active lately, repeatedly filing lawsuits against multiple DeFi projects and trading platforms, imposing hefty fines, with accusations mainly focused on unregistered securities and investor misguidance.
It may seem complicated, but the SEC's logic is quite straightforward: eliminate opaque entities and protect retail investors. Most targeted projects share a common trait — information black boxes.
For example, teams play word games with tokenomics. You have no idea how many tokens are locked in their wallets, when they might unlock, or if they might suddenly dump their holdings and cause a crash. This uncertainty itself is a minefield. Digging deeper, the project's financial health is also a mystery. How much does the protocol earn each month? Where does the revenue go? How much is left in the treasury? All of this depends on the project team’s word; investors can only choose to believe or not.
There's an even more painful issue: centralized power. A multi-signature wallet can control all fund flows, and the team can upgrade smart contracts at any time to change the rules of the game. In such cases, investors lack real security.
In contrast, projects that have prioritized transparency and compliance from the start may become winners in the regulatory wave. Clear token release schedules, regular financial disclosures, and decentralized governance structures are not just perks but basic survival conditions. In an era where regulatory fists are tightening, such projects are not only more likely to survive but also to thrive.