- Solana’s price fell 8% on rumors of the investigation.
- SEC Investigation Claims Solana Surfaces.
- Celebrity meme coins are rampant in Solana.
Regulation has been one of the key concerns for cryptocurrencies in recent years due to the lack of a clear framework in many jurisdictions. This is especially true in the United States, where the Securities and Exchange Commission (SEC) previously tracked cryptocurrency projects.
In such an environment, it is not surprising that even rumors of an investigation could have a negative impact on the token. Most recently, unconfirmed rumors about an investigation into Solana led to a significant drop in the price of SOL.
Crypto influencer claims Solana is investigating
On Monday, June 24, Crypto Bitlord, a well-known cryptocurrency influencer, claimed to have heard rumors of a possible investigation into Solana. They claimed that a “large-scale investigation” by an unknown entity is about to be made public, which could have a serious negative impact on the token.
Following this unconfirmed report, SOL prices fell. The token fell 8% to $123 following the announcement, although Bitlord did not elaborate on the potential investigation or source. After the initial drop, SOL soon rebounded to $129, but is still down 3.3% in the last 24 hours.
Solana’s current price drop does not differ much from the market trend, which suggests that the market is skeptical of these rumors. In comparison, Bitcoin is trading at $61,194, down 4.49% on the day. In particular, the community’s reaction shows that many people are skeptical of the rumor, or at least waiting for confirmation.
Reactions to the claims were mixed. While some expressed real concerns, others were skeptical and questioned the credibility of the claims. For example, several users pointed out that “Solana” is a blockchain and therefore cannot actually be investigated. Rather, the places that could be targeted are Solana Research Institute or Solana Foundation.
Other users suggested that the rumor might be a tactic to manipulate the market. “Bro tricked all of his followers into buying Solana at a lower price? “This is very optimistic.”
Although regulators have given no indication that they will pursue Solana, the network has been struggling with several issues recently. First, the foundation revealed an issue with validators exploiting users with “sandwich” attacks. Moreover, the network has seen a proliferation of low-quality celebrity tokens, often leaving investors holding the bag.
On the flip side
- Crypto Bitlord did not provide any details about their claims, nor did they specify which regulator is investigating Solana, which has led to skepticism about their claims.
- Several cryptocurrency analysts previously speculated about the possibility of Solana ETF approval. but, Most Agree It is unlikely that the SEC will approve an altcoin ETF anytime soon.
Why This Matters
The cryptocurrency space is full of people trying to manipulate the market for their own benefit. Therefore, it is important to critically examine these claims and wait for actual confirmation. That said, there are issues that Solana may investigate if it is unable to resolve them on its own.
Learn more about Solana validators profiting at the expense of users:
Solana validators profit as users lose $30 million in ‘sandwich trade’
Learn more about rampant deepfake scams.
Elon Musk Deepfake Scam Cryptocurrency Investors: How to Stay Safe