How will Solana react to Sam’s guilty verdict? New rally or profit taking?

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Last Updated on 6 November 2023 by CryptoTips.eu

What will become of Solana’s price now that Sam Bankman-Fried has been convicted? Will it start a new rally (the price has already gone up by some 400% this year) or will the digital currency get dumped again? We discuss pros and cons.

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Ethereum-killer

Together with Cardano, Solana was long seen as the only possible ‘Ethereum killer’. By this we mean crypto projects that can develop and improve themselves to compete with Ethereum.

Bitcoin cannot adapt itself as no one knows who or where Satoshi Nakamoto is. Ethereum can do so thanks to Vitalik Buterin and his team.

Ethereum is therefore seen as a more modern cryptocurrency, which is becoming extremely popular with institutional investors. Alongside Ethereum, project like Cardano and Solana were also introduced, both of these could normally compete with Vitalik’s team on a technical level.

Solana became so popular in 2020 and 2021 that its largest investor was soon none other than Sam Bankman-Fried, the founder of the back then very popular platform FTX.

Both FTX and Alameda (his investment firm run by his ex, Caroline Ellison) bought hundreds of millions of Solana crypto-coins. When FTX went bankrupt in November 2022, Solana’s price also collapsed as a result.

Arthur Hayes

However, at the beginning of this year it turned out that among the funds that FTX’s bankruptcy team had recovered, hundreds of millions of Solana were still present. So nothing lost in fact. Solana started an incredible climb in 2023, just like Bitcoin did.

When it became apparent that Sam would likely be sentenced this week, the price of Solana went ballistic. Now that the ‘guilty’ verdict has been reached, we see a small selloff, probably traders taking profits.

Even renowned crypto savant Arthur Hayes (founder of BitMEX) admitted this week that he bought Solana, probably at the height of a temporary top.

What next for Solana? Much will depend on how FTX’s funds will be distributed, but it is clear that the project itself is still working very well. If Wall Street approves a Bitcoin ETF later this year, I think you can expect another Solana rally.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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