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SOL’s 3.2% hike in 24 hours despite a lawsuit against Solana Labs means… 

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The latest crypto legal battle that is underway happens to be against Solana Labs among others. The class-action lawsuit has been filed on behalf of Mark Young, a holder of SOL tokens. With the SEC v Ripple seeing no immediate solution, could another legal scrutiny dent the optimism of the crypto community?

Here we go again!

Solana is now the center of legal action after a California resident, Mark Young, pressed a lawsuit against them. The plaintiff has included Solana Labs and CEO Anatoly Yakovenko, Solana Foundation, VC firm multi-coin, and co-founder Kyle Samani along with trading platform FalconX in the lawsuit.

The lawsuit has been filed on behalf of other SOL investors since its inception on 24 March 2020 through the present. The lawsuit goes on to claim that SOL tokens are “unregistered securities”. Going ahead the document states that,

“Defendants made enormous profits through the sale of SOL securities to retail investors in the United States, in violation of the registration provisions of federal and state securities laws, and the investors have suffered enormous losses.”

Young believes that the defendants have misled investors from the off-set and made illegal profits along the way. The document includes tweets and other comments from the defendants that will be assessed during the judicial proceedings.

In light of these events, let’s see how the native SOL token reacted to the lawsuit.

Rallying still

SOL has rubbished any bad omens from the lawsuit. It has been on a rally over the past week, registering a 20.5% price recovery. SOL, at press time, was trading at $38.5 on the back of a 4.5% price hike post 8 July. However, Solana volumes took a hit of 7.2% in 24 hours. Traders’ sentiment is certainly being affected by the incoming legal action.

Another reason here could be the dip in the social dominance metric. As per data from Santiment, the metric has dipped to its lowest in July and currently stands at 0.74%. Investors can still be glad that the price is unaffected by these metrics as the price hasn’t been moving downwards.

Source: Santiment

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Kanav is a journalist at AMBCrypto. He has a Masters in Media and International Conflict and is interested in areas of digital society, crypto developments in the political sphere and the socio-cultural impact of a crypto-society.

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