Solana’s post-SEC dilemma – To fork or not?
- Solana’s categorization as a security by the SEC has prompted consideration of a network fork
- Negative sentiment and price decline affected SOL after exchange delistings
Solana has been labeled a security by the SEC in the lawsuit it filed against Coinbase and Binance. Due to this, many exchanges such as Robinhood have since delisted SOL. This has had a detrimental impact on SOL’s price, leading many validators on the Solana network to contemplate a fork as a means to protect themselves from the agency’s scrutiny.
Realistic or not, here’s SOL’s market cap in BTC’s terms
To fork or not to fork?
The Solana community is seriously considering the possibility of forking the network, as they believe it could potentially alleviate the SEC’s scrutiny. Additionally, a fork might help alleviate the selling pressure resulting from Alameda Research’s significant holdings of SOL tokens.
Alameda Research currently possesses 8.2% of all staked SOL supply, and is expected to sell off a substantial portion. This could cause the price of Solana to plummet on the charts.
HGEABC, the founder of Abracadabra, was one to share support for a fork of the Solana network. However, there are dissenting voices within the community who oppose this idea and do not endorse the concept of a fork.
Bold but not a bad idea actually. Community fork solana will get rid of sec issue.
Blink twice if you agree https://t.co/fWxbkMQ4aI
— HGE.ABC (@HGEABC) June 10, 2023
While Solana has not made an official statement regarding the possibility of a fork, they have responded to the SEC’s classification of SOL as security.
Solana’s team shared its disagreement with this characterization. The Foundation also emphasized its desire for policymakers to engage constructively to establish legal clarity for entrepreneurs operating in the digital assets space. Additionally, it highlighted the strength of the Solana builder community and its continuous efforts in creating innovative projects and products.
No changes in sentiment
Despite Solana’s attempts to address concerns and alleviate fear, the overall sentiment around SOL has remained negative. In fact, Santiment’s data revealed a significant decline in weighted sentiment around SOL, indicating negative comments outweighed positive ones at the time of reporting.
In line with the sentiment shift, SOL’s price recorded a decline over this period. The trading volume, which saw a temporary spike in recent days, also saw a downturn around the same timeframe.
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As the Solana community navigates the SEC’s classification as a security and the potential consequences of delistings, the possibility of a fork continues to be debated.
The next few days will shed more light on the community’s ultimate decision and its implications for the future of Solana.