In a shocking turn of events, the Solana (SOL) token has emerged as one of the biggest losers in the volatile cryptocurrency market, experiencing a staggering 30% price drop within just seven days. This downward trend can be attributed to the recent declaration by the US Securities and Exchange Commission (SEC) regarding Solana and several other altcoins, classifying them as securities in their lawsuits against Coinbase and Binance US.
There is a possibility that the SEC could take legal action against the Solana Foundation similar to what occurred with Ripple Labs in December 2020. As a result, the price of SOL may continue to decline if the SEC proceeds with such measures, leading to more panic selling among investors.
Related: Polygon, Solana, and Cardano Unite to Combat SEC’s Claims of Unregistered Securities in the Crypto Realm
Solana Foundation Challenges SEC’s Classification
Reacting swiftly to the SEC’s classification of the SOL token as an unregistered security, the Solana Foundation issued a statement vehemently rejecting this categorization. They highlight SOL as the native token of the Solana blockchain, a robust and community-based software project that relies on the decentralized user and developer engagement for its growth and development.
A heated debate has ensued among the Solana community regarding the potential for a blockchain fork to evade the regulatory issues brought on by the SEC. In an attempt to gauge community sentiment, the founder of Degen Picks conducted a poll, with 2,050 participants expressing their views. Interestingly, 39.9% voted in favor of forking, while 24.2% responded dismissively with “stfu” (shut the fuck up).
However, opinions within the community regarding a fork are divided, and it’s important to note that no specific plan for a fork has been outlined by proponents at this time.
According to the founder of Degen Picks, a fork could potentially resolve not only the regulatory issues posed by the SEC but also mitigate the challenges faced by FTX, including bankruptcy concerns. By creating a new set of rules and parameters for a replicated Solana chain, wallets associated with FTX could be blacklisted, ensuring they do not receive the new token.
In summary, the Solana token has experienced a significant decline in value due to the SEC’s classification as a security, raising concerns and uncertainties within the Solana community. Discussions about the possibility of a fork have emerged, but there is no concrete plan in place. The situation remains complex, with potential implications for both the regulatory landscape and the stability of certain exchanges.
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