Solana’s recent activities in the cryptocurrency market have caused concern among investors, as the digital currency experienced a sudden price drop of 24.84% in the past month.
One possible explanation for these movements, which led to approximately $10 billion leaving Solana’s market cap in the past week, surfaced on June 24. Crypto Bitlord, a well-known influencer in the cryptocurrency industry, posted on X claiming to have heard rumors 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 an agency like the U.S. Securities and Exchange Commission (SEC) to investigate a digital asset, the combination of the claim that “a huge case is about to become public” and the recent price actions of SOL gave the claim significant weight.
The immense level of activity on the Solana blockchain, which has seen over 1 million new cryptocurrencies launched since April, provides numerous potential targets for an investigation. However, the SEC’s previous actions suggest that their focus may be on determining whether certain digital assets can be classified as unregistered securities.
It is important to note that while the SEC is a likely suspect, there is no clear indication that Gary Gensler’s agency is the one building the “huge case.”
Furthermore, although many recent projects on SOL have been legitimate, there has also been a noticeable increase in illicit activity. LucieShib, a marketing executive for Shiba Inu, recently warned that the influx of celebrity accounts posting Solana addresses is a result of these accounts being compromised and hijacked.
Regardless of the existence of the “huge case,” Solana’s recent price movements have certainly unsettled some traders. Influencers have even gone so far as to proclaim the death of SOL, arguing that “the Solana Foundation, under pressure from the Feds, are unable to deploy the algorithmic trading strategies to defend.”
The price chart for Solana reflects the significant changes the cryptocurrency has undergone in recent weeks. After experiencing a substantial climb since October 2023 and a period of relative stability after reaching yearly highs in March, SOL has entered a significant downtrend.
In contrast to its year-to-date performance, which saw a 25.62% rise, SOL has plummeted 24.84% in the past 30 days, dropping from $167 to $126.63.
The downtrend has continued in the last 24 hours, with SOL plunging an additional 4.85% after a period of relative stability over the past six days.
Disclaimer: The content of this article should not be considered investment advice. Investing in cryptocurrency carries risks, and your capital is at risk.
