- Solanaโs 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 โhuge investigationโ 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 SOLโs 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, Solanaโs 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 โSolanaโ is a blockchain, and canโt really be under investigation. Rather, itโs Solana Labs or the Solana Foundation that could be targeted.ย
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.”
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 โsandwichโ 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 โSandwich Trades
Read more about deepfake scams running rampant:
Elon Musk Deepfake Scams Crypto Investors: How to Stay Safe
