TL; DR
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SOL’s three biggest weaknesses and strengths are listed below.
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Firstly FTX; second, venture capital financing; and third, the stability of SOL.
Full story
You know that episode of The Office, true Michael interviews for the position at corporate?
And when asked to list his weaknesses, he actually lists his strengths…
(“I care too much, I work too hard, etc.”)
Yeah, well, Solana seems to be “pulling a Michael Scott” right now.
Here are SOL’s three biggest weaknesses-turned-strengths:
Hold on, before we go any further, it’s worth mentioning…
These are just observations we’ve made based on our daily (over)consumption of crypto news over the past 1-2 years (we would way disabled in our interpretations).
This is not financial advice nor is it a vote for/against competing chains.
(The point is: don’t @ us).
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Weakness: FTX owned a lot of SOL, but if it were sold in bankruptcy proceedings, it could crash the price.
Power: FTX has since locked up much of its holdings in staking contracts, suggesting it plans to hold on for a while.
Plus, the company even recently sold a $13 million bag of cash… and not much happened to the price. That’s a big vote of confidence!
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Weakness: Many venture capitalists invested in SOL early on, labeling it as a “VC coin,” raising fears that these investors would cash out and dump the price if the market rose.
Power: This is all still true – VCs own a lot of SOL and could well cash out/cash out.
…but it doesn’t seem to be having a negative impact on the price so far – in fact, SOL is up ~3x in the last month – and now everyone is getting FOMO.
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Weakness: For a while there, Solana had the habit of working for hours/days in a row, as in quitting work. That is NOT something you want to see in a global monetary network.
Power: The core development team claimed to have fixed the issue earlier this year… and so far so good!
Okay, that’s it. That’s what the fuck is going on with Solana.