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Solana: Be Extra Cautious With This One

By Cryptopeach | Public Thoughts | 8 Nov 2021


Hello,

We have seen Solana rising in price and popularity this year, all seems to be great with this project, but is it really like this?

No, it's not, the majority of people don't follow all the news about this coin and bad news tend to be filtered out. The newcomers in the space may also be unaware of what happened to this coin. So what happened?

Let us start in 2020, Solana had a circulating supply of 8 million coins, but someone from the community found a wallet that holded 11 million coins and the wallet belonged to a member of the Solana team. This raised red flags and the news quickly reached everyone in the community. Solana promised to burn these coins in the next 30 days. It actually happened they burned the coins, but injected another 8 million in the circulating supply, so in reality they didn't burn all the 11 million coins but only 3 million. This made investors furious. Solana was pulling rugs in a soft way. We have to note that this situation happened again this year. Shady stuff by the team I have to say.

This year also marked a shutdown in the Solana blockchain for a day, the blockchain had problems handling the number of transactions and everything got stucked. Making people unable to move their funds. This situation didn't scale much because the price didn't drop a lot, if it had happened we probably wouldn't see Solana as a Top 5 coin today.

Another thing that troubles some people including me is the fact that the team behind Solana holds the majority of coins. This makes Solana centralized and we know that centralization isn't really the point of crypto.

This doesn't mean that the project will fail, but everyone should know what happened before, to know how to invest in the future.

In conclusion, there are a few red flags and that's a bit worrying for investors. Do a proper research before investing and you should be okay.

Best Regards,

Cryptopeach

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Cryptopeach
Cryptopeach

Crypto enthusiast.


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