Is Crypto Coin Solana About To Crash?

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Last Updated on 6 November 2023 by CryptoTips.eu

Although crypto markets remained mostly flat in the past few days, there has been one notable exception as of late. Solana, or SOL, the token that represents the Solana blockchain, has been falling ever faster in the past few weeks. Since Wednesday it broke through the psychological $10 barrier even. If you know that Solana traded for an astonishing $260 last year in November, that means it lost about 95% since it’s all-time-high. Once again, Sam Bankman-Fried, CEO of the bankrupt FTX platform, seems to blame.

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Ethereum killer

Last year Solana still traded in the Coinmarketcap top 10 of most popular and most valuable coins. It was regarded as one of the most popular blockchain networks in the world. Some even considered it a possible ‘Ethereum-killer’ due to its incredible transaction speed and much lower gas fees than the Vitalik Buterin coin.

By now, Solana is only worth a fraction of its previous price and has known a brutal 2022.

Once again, it seems that FTX founder Sam Bankman-Fried is (partly) to blame. Lots of Solana’s loss was registered in the past few months, ever since the FTX scandal broke. Although Solana has no direct affiliation with FTX and should not be tainted by its losses or bankruptcy, it is ‘guilty by association’.

Many on crypto Twitter have repeatedly pointed out that Sam Bankman-Fried was a big fan of the Solana network and that FTX even considered purchasing it. It is therefore assumed that Solana might get into trouble if all the details of Sam Bankman-Fried’s court case come to light.

Both FTX and Alameda, Bankman-Fried’s trading firm, held Solana tokens on their balance sheets.

The general problem with crypto is that its lack of intrinsic value means that values are based on confidence and perceived utility. If those suffer in relation to a specific token, then it suffers.

Explained Steve Sosnick, chief strategist at Interactive Brokers.

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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