Solana community discusses fork due to SEC as price drops.

The Solana (SOL) token has experienced a significant drop in price of around 30% in the past seven days, making it one of the biggest losers on the crypto market. This drop is due to the US Securities and Exchange Commission (SEC) declaring the Solana token, along with several other altcoins, as securities in its lawsuits against Coinbase and Binance US. As a result, the SOL price has plummeted.

In a worst-case scenario, the SEC could sue the Solana Foundation in the same way it did Ripple Labs in December 2020. This means that the SOL price’s slump may not be over yet if the SEC takes this step, causing more investors to panic sell.

Solana Community and Developers Oppose the SEC

The Solana Foundation has responded to the SEC’s classification of its SOL token as an unregistered security. In a statement, it said, “The Solana Foundation strongly believes that SOL is not a security,” adding “SOL is the native token to the Solana blockchain, a robust, open-source, community-based software project that relies on decentralized user and developer engagement to expand and evolve.”

While one developer at a recent event dismissed the SEC’s legal action, stating that developers “do not care” about what the SEC thinks, there are some in the community that are already thinking about possible solutions to the SEC issue.

The founder of Degen Picks launched a poll within the Solana community asking whether the blockchain should fork to avoid regulatory issues with the SEC. A total of 2,050 people participated in the poll, with 39.9% answering “yes” while 24.2% answered “shut the fuck up.”

OK hear me out. It’s time to fork $SOL . SEC disappears, FTX bankruptcy can dump on themselves. $BTC and $ETH both did it.

cc @SOLBigBrain

Your reaction?

— Caps² (@capsjpeg) June 10, 2023

Surprisingly, the idea is supported by Abracadabra founder @HGEABC. Via Twitter, he responded to the poll, writing, “Bold but not a bad idea actually. Community fork Solana will get rid of SEC issue. No bankruptcy will dump on you for next 3 years continuously. ETH is a fork of ETC and doing well. Blink twice if you agree.”

A user then asked the Abracadabra founder if he could get Solana Labs co-founder Anatoly Yakovenko and his team to work on the fork. The Abracadabra founder speculated that they “probably will” if they are sued by the SEC. “Then work on the fork save their own problem too.” Remarkably, the Solana Foundation has not yet responded to the poll.

However, there are mixed opinions in the community about the fork. It’s worth noting that proponents don’t have a specific plan for a fork yet.

Despite this, the founder of Degen Picks believes that a fork could not only solve the SEC problem but also the FTX bankruptcy. A copy of the Solana chain could be given a new set of rules and parameters. The FTX wallets could be blacklisted and not receive the new token.

SOL Price Keeps Falling

At present, the SOL price is trading at $15.15. The 1-day chart shows that the situation for the SOL price is risky. The bulls need to defend the $12.82 level at all costs to prevent a fall to the December 2022 low at $8.02.

To the upside, the $16.00 level is the key resistance for now. With an RSI of 26.2, SOL is in oversold territory and could initiate a recovery.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

BlockChain

DeFi Dilemma: Staking Ether Goes Liquid!

Fashion company Ether.fi secures $5.3 million in seed funding from North Island VC in March.

Bitcoin

HTX Crypto Exchange Bounces Back in Style

HTX crypto exchange resumes Bitcoin transactions after recovering from $30 million hot wallet hack.

News

HTX From Hot to Cold - $258 Million Flows out since Resuming Operations Last Month

After a recent security breach, HTX, which is associated with Justin Sun, has experienced a significant $248 million ...

Opinion

EigenLayer's Sreeram Kannan on Ethereum's risky 'restaking' trend

In an exciting interview, Sreeram Kannan, the visionary founder of EigenLayer and a trailblazer in the field of resta...

News

Justin Sun considers acquiring FTX's cryptocurrency holdings.

Justin Sun, the visionary Founder of Tron and esteemed Advisor to Huobi Global, has enthusiastically conveyed his str...

BlockChain

Justin Sun's Huobi-linked exchange, WhiteBIT, raises concerns over its lending platform.

WhiteBIT, an exchange associated with Justin Sun, has recently gained attention for offering an impressive Annual Per...