The price of BarnBridge BOND token more than doubled, reaching $4.20 on a Saturday afternoon, following indications that the defunct crypto derivatives project is willing to comply with unspecified demands from the U.S. Securities and Exchange Commission (SEC).
This surge continued a two-day rally, propelling the governance asset, used by BOND holders to vote on decisions within BarnBridge, to its highest price since May.
Rally Triggered by Insider Actions
The rally began after a key insider at BarnBridge enabled founders Tyler Ward and Troy Murray to “undertake all actions necessary to comply with the Order” from the SEC, including the potential payment of a fine. Notably, a wallet linked to the project’s team, which held the largest voting position.
It was the sole vote cast in BarnBridge’s two-day poll on how to proceed. This raised questions in the crypto community about the spirit of decentralization and community governance.
SEC’s Ongoing Investigation
Securities regulators have been actively investigating the decentralized finance (DeFi) protocol since at least July. As a response to this scrutiny, the protocol had ceased financing development engaged legal counsel, and locked down its Discord server shortly thereafter.