Robinhood Markets Inc., the company responsible for the popular stock and crypto trading app, disclosed it had received a Wells Notice from the US Securities and Exchange Commission (SEC) on May 4.

The announcement affected the crypto market, causing Bitcoin to drop from intraday highs above $65,000. Despite this, analysts remain optimistic about BTC and other major altcoins. The introduction of a new crypto project called KangaMoon (KANG) has also caught the attention of investors.

The SEC recently issued a Wells Notice against Robinhood, resulting in a decline in the crypto market. The SEC has accused Robinhood Crypto of securities violations. In response, the company expressed its willingness to cooperate with the regulator. Robinhood's chief compliance officer, Dan Gallagher, emphasized that they do not believe the assets on their platform qualify as securities.

The market's reaction to the news was evident as Bitcoin's price dropped from above $65,000, settling near $63,300. Robinhood's share price also experienced a more than 5% decrease in the stock market. Following the Wells Notice issued to Robinhood Crypto, the SEC has taken action against several other crypto companies, including exchanges like Coinbase, Binance, and Kraken.

Despite concerns raised by the SEC's approach to crypto regulation, the crypto investment community remains positive about the industry's future. Projects like KangaMoon (KANG) continue to draw interest due to their unique features, such as play-to-earn gaming and SocialFi integration.

KangaMoon has seen significant success in its presale, reaching the $6 million mark with the KANG token priced at $0.0196 in Stage 5. The token offers holders the opportunity to earn more KANG during the presale period, allowing them to potentially profit before the token is listed on exchanges. Once the presale ends, KANG tokens will be tradable, potentially leading to increased demand during a bullish market performance.