In November, the FTX exchange and the Alameda fund, the main manipulators of SOL, collapsed. As a result, the largest holders and backers of the project went bankrupt, causing SOL to drop to $10.
📍 Hints that say it’s better not to buy it already:
▪️ The money in the ecosystem has gone much lower, from $10 billion to $225 million.
This is the lowest level since April 2021. 10%-40% of liquidity is being withdrawn from the main protocols each week. On top of that, the Top 3 protocol on Raydium solan was recently hacked.
▪️ Top-1 wallet on Solana added support for Ethereum and Polygon blockchain.
Apparently to diversify the risks of working only on solana.
▪️ Top NFT collections DeGods and Y00ts are moving to Ethereum and Polygon, respectively, in January.
Apparently, the NFT sphere on solana is coming to a sunset, too.
▪️ The number of developers on Solana has dropped from 2,453 to 75 in a year.
There is a negative backdrop around Solana because of tight ties to FTX and Alameda, who have used customer funds for their own purposes.
Despite this, Solana has plans for 2023. Alex Yakovenko, CEO of Solana, explained what the team will be doing: developing Solana Stack software for mobile devices, creating a seamless network, and simplifying programming.
Solana still has a community, developers, and even some liquidity. The network won’t finally die.
👉 If you are not ready to take the risk – forget about the asset, the market is full of more interesting projects.