Wednesday, May 22, 2024

6 Reasons Why Solana is Dead and Going to Zero

The year 2022 was very painful for the crypto industry. After the crash of Terra Luna, the FTX scam caught everyone by surprise, and its effect is also visible on Solana as Alameda Research placed a large number of tokens in the Solana ecosystem.

At the time of writing, Solana ($SOL) was trading at $9.93

SBF Thinks Solana is the “most underrated” token

Solana was backed by one of the biggest frauds in history. The media portrayed Sam Bankman-Fried as a boy genius wunderkind, which made people want to invest in this average blockchain. Now he is disgraced and facing life in prison.

FTX Used Customer Funds 

FTX committing fraud and stealing customer funds to invest in Solana projects was the main reason anything was successful on Solana. FTX almost used $10 billion of customer funds to prop up it’s owner trading firm. Now all that money is gone and FTX will forever be negatively associated with Solana.

Multicoin Lost Crypto Fund’s Capital

Multicoin Capital, the biggest advocates for both FTX and Solana took a massive hit. They lost more than half of it’s crypto funds capital this month. This is following their other notorious 2017-18 bet on EOS. You can feel the LP redemptions in the SOL price right now as it trends to zero.

Solana’s Top Two NFT Projects Bridging Off

In addition to many projects choosing to return to or build on Ethereum because of the advancement of Layer 2 technology as well as the constant network outages plaguing Solana, The two biggest NFT projects on Solana DeGods and Y00ts NFTs are leaving for Ethereum. All roads lead back to Ethereum

Paid Celebrities Spokesperson

Many celebrities were paid to promote and shill Solana for FTX as spokespersons. Shaq and Kevin O’Leary distances themselves from crypto and FTX collapse. Shaq said he was just a paid spokesperson and Kevin reveals FTX paid him $15 million to become a spokesperson for the exchange.

Must Read: Don’t Miss Optimism 2nd airdrop

It’s become clear that Solana was used by FTX as one piece of their elaborate scam to help keep the FTX / Alameda Ponzi going. Ethereum was the real deal all along.

Faked DeFi Ecosystem

Most of the developer activity on Solana was faked by one guy who has since left. The Macalinao brothers used a web of bogus identities to create the illusion of developer community, juicing value on the Solana blockchain and Saber protocol. Now they are moving to Aptos.

Final Thoughts

However, Investor sentiment remains mostly negative, an ongoing survey conducted by Bitboy shows that nearly 70% of users believe Solana to be dead and it won’t recover.

In 2018, the Ethereum ecosystem experienced a similar backlash and lost over 90% of its value; the coin would later rise to new records. Despite the fact that Solana has been experiencing a number of problems as of late, we think you should not give up hope. The crypto industry is full of surprises, and 2023 may prove us wrong.

Judy Smith
Judy Smith
Being in love with communications and human relations I found myself in Journalism. Another passion of mine is the crypto world and I believe in crypto future. So I have spent the past 8 years studying as much as I can and sharing my own experiences with people. I am writing now about new trends - how crypto keeps changing the world, businesses and our future.

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