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What the Hell Is Going On With Solana?

TL;DR

  • SOL's three biggest weaknesses, turned strengths are listed below.

  • Firstly, FTX; secondly, VC funding; and thirdly, the stability of SOL.

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You know that episode of The Office, where ​Michael interviews​ for the position at corporate?

And when asked to list his weaknesses, he actually lists his strengths...

("I care too much, I work too hard, etc.")

Yeah, well, Solana seems to be 'pulling a Michael Scott' right about now.

Here're SOL's three biggest weaknesses, turned strengths:

Wait - hold up - before we go any further, it's worth mentioning...

These are just observations we've made from our daily (over)consumption of crypto news over the past 1-2 years (we could be way off in our interpretations).

This is not financial advice - neither is it a vote for/against any competing chains.

(Point is: don't @ us).

  1. Weakness: FTX owned a lot of SOL, if it were to be sold off in bankruptcy proceedings, this could crash the price.

    Strength: FTX has since locked up a big chunk of its holdings in ​staking​ contracts, suggesting it plans to hold it for a while.

    Plus: the company even sold a $13M bag of its liquid holdings recently...and not much happened to the price. That's a big vote of confidence!

  2. Weakness: A lot of venture capitalists invested in SOL early on, which branded it as a 'VC coin,' stoking fears that these investors would cash out and dump the price as the market rose.

    Strength: This is all still true - VC's hold a lot of SOL and they could well cash out/be cashing out.

    ...but it doesn't seem to be negatively affecting the price so far - in fact, SOL has ~3x'd in the past month - and now everyone's getting FOMO.

  3. Weakness: For a while there, Solana had a habit of going down - as in, ceasing to work - for hours/days at a time. That's NOT something you want to see in a global monetary network.

    Strength: The core development team claimed to have fixed the issue earlier this year...and so far, so good!

Alright, that's it. That's what the hell is going on with Solana.