Has an investigation been launched into Solana
Solana’s recent activity in the cryptocurrency market has caused concern among investors, as the digital currency experienced a sudden drop of 24.84% in the past month.
One possible explanation for these movements, which resulted in approximately $10 billion leaving Solana’s market cap in the last week, emerged on June 24 when Crypto Bitlord, a well-known cryptocurrency influencer, made a post suggesting that SOL is under investigation.
The influencer stated: “We are hearing rumors that $SOL is under investigation and a huge case is about to become public. This has been brewing for weeks now and couldn’t come at a worse time. If what we heard is true, start praying for Solana.”
While it is not uncommon for agencies like the U.S. Securities and Exchange Commission (SEC) to investigate digital assets, the claim that a “huge case is about to become public,” combined with the recent price actions, gave this claim significant weight.
The high volume of activity on the Solana blockchain, with over 1 million new cryptocurrencies launched since April, provides numerous potential subjects for investigation. The SEC’s previous actions suggest that they may be investigating whether certain digital assets can be classified as unregistered securities.
However, it should be noted that there is no clear indication that Gary Gensler’s agency, the SEC, is the one building the “huge case.”
In addition to legitimate projects on SOL, there has also been an increase in illicit activity. LucieShib, a marketing executive for Shiba Inu (SHIB), recently warned that the surge in celebrity accounts posting Solana addresses is due to those accounts being compromised and hijacked.
Regardless of the existence of the “huge case,” Solana’s recent price action has unnerved some traders, and influencers have predicted the demise of SOL, arguing that “the Solana Foundation, under pressure from the Feds, is unable to deploy algorithmic trading strategies to defend.”
The price chart for Solana reflects a significant change in recent weeks. After experiencing a substantial climb since October 2023 and a period of relative stability since reaching yearly highs in March, SOL has entered a significant downtrend.
In contrast to its year-to-date performance, which saw a 25.62% increase, Solana has plummeted 24.84% in the last 30 days, dropping from $167 to $126.63.
Furthermore, the downtrend has continued in the past 24 hours, with SOL plunging an additional 4.85% after a period of relative stability over the past six days.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative, and there is a risk of losing capital when investing.
