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Solana (SOL) could be one of the biggest winners from David O. Sacks’ nomination as White House director of artificial intelligence and cryptocurrency. President-elect Donald J. Trump appointed David Sacks as ‘Crypto Czar’ on Thursday.
Trump stated that Sacks will work to develop a legal framework to provide the crypto industry with the clarity it is looking for, allowing the industry to flourish in the United States. Sacks brings a high-profile background: he was Chief Operating Officer of PayPal during its early years and serves as a consultant for the 0x protocol.
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Known for his longstanding support of Bitcoin as a decentralized hedge against traditional finance and a proponent of decentralized finance (DeFi) for increasing transparency in the financial system, Sacks has also invested in multiple cryptocurrency projects through his venture capital firm Craft Ventures.
Why Sacks is super bullish on Solana
One of his most notable exposures is his early investment in the Solana blockchain, achieved through crypto-focused investment firm Multicoin Capital. In 2023, Sacks confirmed that he maintained his Solana (SOL) position despite FTX-related market turbulence and remained “up big.”
Craft Ventures’ early involvement with Solana, through Multicoin Capital, reportedly generated significant returns. According to Sacks’ own account on a podcast (when SOL was $169), this investment rose to a valuation of about $1 billion.
“That fund, I mean, it’s like a 100x fund, it’s just crazy. And as a result, we are the indirect beneficiaries of this huge increase in Solana. It will ultimately be about, you know, a billion dollars of, I think, Solana for us in terms of returns, but the guys at MultiCoin are driving the trading decisions on that,” Sacks revealed during a podcast.
Sacks discussed Solana in detail on the All-In Podcast with Chamath Palihapitiya, the founder and CEO of Social Capital. Their conversations have highlighted Solana’s ability to support fast, cost-effective transactions at scale, with its architecture and throughput often compared favorably to that of Ethereum.
“There are a lot of people, I would say smart money in Silicon Valley, who are betting on a turnaround where Solana could eventually overtake Ethereum as the platform of choice,” Sacks noted.
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It is notable that a Solana ETF is on the way in the US, with five applications already filed with the US Securities and Exchange Commission. Sacks’ appointment likely further increases the likelihood of a spot SOL ETF following Gary Gensler’s departure as SEC chairman on January 20.
Solana’s strong fundamentals and growing institutional recognition are reflected in the price action. At the time of writing, Solana is trading just below a new all-time high reached two days ago at $264.39, after surpassing its previous high set in October 2021 at $259.90.
Should SOL break through this newly formed resistance level, technical analysts point to potential upside targets. These include the 1,272 Fibonacci extension at around $328 and the 1,618 Fibonacci extension at around $415.
At the time of writing, SOL was trading at $234.
Featured image from YouTube, chart from TradingView.com