Unconfirmed Solana Investigation Rumors Bring SOL Down 8%

Solana’s price dropped 8% amid unconfirmed rumors of a possible investigation by an unknown regulator.

Two people gossiping about Solana coin.
Created by Kornelija Poderskytė from DailyCoin
  • Solana’s price fell 8% amid investigation rumors.
  • Claims of an SEC probe into Solana surface.
  • Celebrity memecoins are running rampant on Solana. 

Regulation has been one of the major concerns in crypto in recent years, thanks to a lack of clear frameworks in many jurisdictions. This is especially true for the US, whose Securities and Exchange Commission (SEC) went after crypto projects in the past. 

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In that environment, it is no wonder that even rumors of an investigation can have negative effects on tokens. Most recently, an unconfirmed rumor of an investigation against Solana led to a substantial drop in the price of SOL. 

Crypto Influencer Claims Solana Is Under Investigation

On Monday, June 24, Crypto Bitlord, a well-known crypto influencer, claimed to have heard rumors of a possible investigation into Solana. They claimed that the “huge investigation” from an unknown entity was about to go public, which could have significant negative implications for the token. 

Following this unconfirmed report was a drop in SOL’s price. Despite Bitlord giving no detail about the potential investigation or their sources, the token was down 8% to $123 after the announcement. After the initial drop, SOL soon rebounded to $129 but is still down 3.3% in the last 24 hours.

Currently, Solana’s price drop is not that different from the market trend, indicating that the markets are skeptical of the rumors. For comparison, Bitcoin is down 4.49% in a day, trading at $61,194. Notably, reactions from the community suggest that many are skeptical of the rumors, or at least waiting for confirmation. 

Crypto Community Has Mixed Reactions to the Claims

The response to the claims was mixed. While some expressed real concern, others were skeptical, questioning the credibility of the claims. For instance, several users pointed out that “Solana” is a blockchain, and can’t really be under investigation. Rather, it’s Solana Labs or the Solana Foundation that could be targeted. 

Other users suggested that the rumors might be a tactic to manipulate the market: “Bro misleading all his followers to buy Solana at a cheaper price? This is very bullish.”

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Despite regulators giving no indication they are going after Solana, the network has been struggling with several issues recently. For one, the Foundation has revealed an issue with validators taking advantage of its users with “sandwich” attacks. Moreover, the network has seen a proliferation of low-quality celebrity tokens, which often left investors holding the bag. 

On the Flipside

  • Crypto Bitlord did not provide any detail in his claims, not even specifying the regulatory body investigating Solana, which has led to skepticism over their claims. 
  • Earlier, several crypto analysts speculated about a possible approval of a Solana ETF. However, most agreed that the SEC would be unlikely to approve an altcoin ETF soon.  

Why This Matters

The crypto space is full of people trying to manipulate the markets for their own gain. For that reason, it is important to examine these claims critically and wait for an actual confirmation. That being said, Solana has issues that could open it up to investigations, if it fails to resolve them on its own. 

Read more about Solana validators profiting at the expense of users: 
Solana Validators Profit as Users Lose $30M in ‘Sandwich Trades

Read more about deepfake scams running rampant: 
Elon Musk Deepfake Scams Crypto Investors: How to Stay Safe

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.