Crypto Today I prepared a new investment idea for you.
Questions are often received in personal messages, what do you think of SOL, is it worth opening positions or buying in general for the long term. Guys, I am writing this specifically for you to make it clear! Yes, this is a speculative asset and here you can act locally on the bounces of ETH and Bitcoin, but if you are without experience and knowledge, you better think 100 times before entering into this asset at this point in time. Now I will try to explain why.
I will try to write briefly and clearly, this story is now being heard from everywhere, so you probably won't see anything new for yourself.
Everyone has probably heard about the FTX exchange and what happened to their CEO Sam Bankman, he went bankrupt.
The chart shows that SOL price has lost 68% and this is all due to the FTX crash.
Solana is also likely to collapse!
The fact is that the Solana network is supported by Alameda Research, which, along with FTX, is owned by Sam Bankman-Fried. And the unsavory chain of events that led to the hasty decision to acquire FTX by rival Binance was prompted by reports that cast doubt on Alameda's balance sheet. In addition, SOL may encounter another problem.
Quoting one of the sources:
Withdrawing from storage will kill the coin:
Investors are bracing for a wave of selling pressure with the issuance of 80 million SOL coins betting contracts. This amount was not immediately brought to market; Instead, the whales are likely to split it across multiple trading platforms.
However, the result of millions of SOLs being launched into the market will inevitably increase selling pressure in the future. This will keep retail investors away from the project.
Additionally, there has been an increase in the number of validators who have closed out their positions after 80 million SOL tokens have been issued. This means that the tension in the market will increase dramatically.
Will the asset be able to recover in the near future?
First, investors live in fear. And with an additional 80 million SOL tokens hitting the market, it doesn't look very good for the project and its investors. In addition, SOL is currently the biggest loser on the weekly charts among the top 100 tokens.
Nothing about the project is credible, at least for now. In addition, the cryptocurrency market in general is at its lowest level in recent years. Undoubtedly, it will take a long time to get out of this impasse. Furthermore, we still do not know the full extent of infection from FTX.
In general, guys, there is only one conclusion: you shouldn't look at this project at all right now, even if you want to invest a very small amount and expect to get some kind of rebound and think that everything will fall back into place and the asset will fly again other in space. Until Sam solves his problems, you can forget about the project!