A major victory for the cryptocurrency industry was achieved on August 30, 2023, when a US federal court dismissed a lawsuit filed by the Securities and Exchange Commission (SEC) against UniSwap, a decentralized exchange platform that allows users to swap any ERC-20 tokens.

The SEC had alleged that UniSwap violated the federal securities laws by facilitating the trading of unregistered securities, such as tokens issued by initial coin offerings (ICOs) and decentralized finance (DeFi) projects. The SEC also claimed that Uniswap’s governance token, UNI, was itself a security that should have been registered with the agency.

However, the court ruled that the SEC failed to prove that UniSwap or UNI met the criteria of the Howey test, which is used to determine whether an asset is a security or not. The court also stated that Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, are commodities and not securities, as they are not backed by any central authority or issuer.

The court’s decision is a significant boost for the cryptocurrency industry, as it provides more clarity and certainty on the legal status of digital assets in the US. It also reaffirms the distinction between centralized and decentralized platforms and recognizes the innovation and potential of DeFi.

Uniswap’s founder, Hayden Adams, celebrated the victory on Twitter, saying that “this is a huge win for UniSwap and the whole crypto community. We are grateful for the support of our users, developers, and partners who believe in our vision of a more open and fair financial system.”

The SEC’s director of enforcement, Gurbir Grewal, announced on August 30 that the agency would focus on the “most significant” cases of fraud and manipulation involving digital assets, and that it would not target DEXs or their users for merely listing or trading tokens that may be deemed as securities.

Adams praised this approach as “based”, a slang term that means admirable or courageous, and said that it would foster innovation and experimentation in the decentralized finance (DeFi) space. He also argued that DEXs are not responsible for the quality or legality of the tokens that are traded on their platforms, and that users should exercise due diligence and research before investing in any project.

“DEXs are permissionless protocols that enable anyone to create and trade any ERC20 token. They do not perform any vetting, endorsement, or promotion of the tokens that are listed. Users are solely responsible for their own actions and decisions,” he wrote. Adams added that Uniswap, the leading DEX by trading volume and liquidity, has implemented several measures to protect users from scam tokens, such as displaying warnings, requiring manual token imports, and removing default token lists.

He also encouraged users to report any suspicious or fraudulent activity to the SEC or other relevant authorities, and to use tools such as Etherscan or DeFi Pulse to verify the legitimacy and security of the tokens they trade. Adams concluded his tweet by saying that he hopes the SEC’s stance will encourage more developers to build on top of Uniswap and other DEXs, and to create innovative and valuable products and services for the DeFi community.

The market also reacted positively to the news, as UNI surged by more than 4.70% in the following hours, reaching a new all-time high and currently trading above $4. Bitcoin and Ethereum also gained momentum, breaking above $27,000 and $1,700 respectively.

FirstMate raises $3.75 million in Dragonfly-led Round

FirstMate, a startup that provides AI-powered solutions for maritime logistics, announced today that it has raised $3.75 million in a seed round led by Dragonfly Capital. Other investors include Y Combinator, Naval Ravikant, and several angel investors from the shipping industry.

The company, which graduated from Y Combinator’s Winter 2021 batch, aims to streamline the complex and fragmented processes involved in global trade. FirstMate’s platform uses machine learning and computer vision to automate tasks such as vessel tracking, cargo inspection, and document verification. The platform also provides data-driven insights and recommendations to help shippers optimize their operations and reduce costs.

FirstMate’s co-founder and CEO, said that the company was born out of his own frustration with the inefficiencies and lack of transparency in the maritime sector. And has a background in naval engineering and shipping management, said that he wanted to create a solution that would make the industry more modern and accessible.

“We believe that maritime logistics is ripe for disruption and that AI can play a key role in transforming it. Our vision is to build a platform that connects all the stakeholders in the trade ecosystem and enables seamless and secure transactions. We are thrilled to have the support of Dragonfly Capital and other investors who share our vision and have deep expertise in both AI and shipping,” Smith said.

Dragonfly Capital’s partner said they are impressed by FirstMate’s team and technology. Dragonfly said FirstMate has the potential to become a leader in the maritime logistics space and create significant value for its customers.

“FirstMate is tackling a huge and underserved market that has been largely overlooked by the tech industry. They have built a powerful platform that leverages AI to solve real pain points for shippers and carriers. We are excited to partner with them and help them scale their business,” Lee said.

FirstMate said that it will use the new funding to expand its team, develop new features, and grow its customer base. The company currently serves over 100 customers across 20 countries, including some of the largest shipping companies in the world.