Polygon Network provides an ecosystem of highly scalable decentralized applications (dApps) compatible with the Ethereum Virtual Machine.
MATIC, the native token of the layer-two Polygon Network, is among the biggest gainers in the crypto market over the past 24 hours.
MATIC price is recovering from the drop triggered by accusations made by the US Securities and Exchange Commission (SEC) last week, which in a lawsuit filed against cryptocurrency company Binance claimed that MATIC was a security.
In the last few hours, the price of MATIC has risen by 8,6%, according to data from the cryptocurrency price monitoring platform CoinMarketCap.
Source: CoinMarketCap
At the time of writing, MATIC is trading on the market at $0,65 per token.
Its market cap is above $6.030 billion, while traders of the token are moving around $572 million in trading volume per day. This metric has seen a 50% drop in the past few hours, according to the platform's data.
Why is MATIC rising?
Polygon Labs developers have responded to the SEC's claims that MATIC is a security.
In a tweet posted from their official account, Polygon Labs developers stated that the MATIC token does not qualify as a security under US laws. In the tweet, the developers assured that decisions have been made from the beginning to ensure that Polygon Network is implemented and consolidated as a global network, outside the United States and, therefore, the scope of its federal agencies.
“We are proud of the history of the Polygon network, developed outside the US, deployed outside the US, and focused to this day on the global community that supports the network,” Polygon Network developers wrote on the social network.
Polygon Network is one of several projects named in the SEC's lawsuit against Binance and one that has defended itself against the securities regulator's allegations.
MATIC focuses on blockchain security
According to the SEC, Polygon Labs encouraged MATIC investors in the past to appreciate the token as a potential investment, so it meets the Howey test and can be classified as a securityHowever, Polygon developers say MATIC has been focused on network security since its inception. MATIC has been “a necessary part of the Polygon technology since day 1” to ensure network security and has never targeted or been directed at the US market, they said.
The developer-led response to the SEC and the blockchain network’s constant advancements, improvements, and partnerships appear to be fueling MATIC’s recovery in the market.
Continue reading: Deutsche Telekom joins Polygon Network as validator
