Crypto Investors avoiding investment in Solana (Sol) coin, Here is why?
Now crypto investors are considering Sol coin as a risky investment asset, on behalf of two facts.
Solana is a popular Proof-of-stake (PoS) crypto network. This network can process nearly 65,000 transactions per second. The scalability of Solana blockchain is top in the crypto sector, over any other crypto sector. Sol is the native coin of the Solana network.
As we know, recently the United States Securities Exchange Commission (SEC) sued BinanceUS & Coinbase crypto exchange. Notably, the SEC’s complaint mentioned a dozen of crypto assets as a crypto security token, including Sol coin.
SOL vs SEC
The majority of crypto Investors are considering Solana coin as a risky asset, as the SEC body alleged that Sol coin is a security asset. Few experts noted that if Solana Labs, a blockchain firm behind the Solana project, is sued by the SEC then in that situation it will be very tough for Sol coin to achieve stability, as already its big backer Alameda Research & FTX exchange has gone bankrupt.
Solana & Centralization
With the help of the Proof-of-history (PoH) protocol, the Solana network can easily process a bulk amount of transactions per second.
Once in the past, Solana’s co-founder said that they are mainly focussing on scalability enhancement, not decentralisation of the network, as the majority of the people need efficient crypto networks.
According to experts’ point of view, the SEC agency further may consider the past statement passed by the Solana co-founder to push Sol under the security asset category.
If Sol coin will fall under the security asset class in the final regulatory action then the use case of the Sol coin will be reduced significantly.
Sol price action
The current trade price of Sol coin is $17 & this trade price is 9.5% down over the last 24 hours’ trade volume, following such negative news.
Read also: XRP coin strongly trading despite SEC’s lawsuit against crypto firms, Here is why?
