‘Solana Is Deceptively Designed to Falsely Inflate Usage,’ Alleges Crypto Researcher

“Solana is disingenuously designed to inflate usage erroneously,” college crypto researcher

CyberCapital founder and CIO Justin Pons criticized Solana on Twitter, detailing her poor record of crashes, failures, hacking and scandals.

Justin Ponce, founder and CIO of CyberCapital, made some stark remarks about Solana and its native cryptocurrency (SOL) in a lengthy Twitter post published on October 3.

The cryptocurrency researcher said there was a “blatant fraud” at the birth of SOL and discusses how misrepresentations were made regarding the circulating supply of cryptocurrency.

The entire Twitter thread was highly critical of Solana and his operations, citing “repeated downtimes, failures, hacking, and scandals.” In terms of total closed-end SOL (TVL) value and circulating supply, Bons had a lot to say. The researcher said “the majority of SOL TVL was fake” when “two developers pretended to be 10+ developers and promised the same TVL over and over,” which “represents 70% of TVL’s $10 billion in SOL at its peak.”

Pons stated that the team said there was 8.2 million sols in circulation in April 2020, but there was already more than 20 million sols in circulation. He also mentioned a third party who found an unlocked SOL wallet containing more than 13 million coins. The SOL team responded by saying that it was loaned to a market maker and promised to burn it down within 30 days.

Donations made a source containing all the information discussed. He says the project history indicates bad behavior. Among these are lying about supply and traded transactions, “a deceptive design to falsely inflate usage,” and the SOL ecosystem being “complicit in “faking” peak TVL numbers.”

Poor reputation due to interruptions

Solana has experienced a number of network outages, which have grabbed headlines and imposed scrutiny on network usability. Recently, the network went down for more than three hours on October 1, which happened because one validator generated an invalid block. The way in which the issue was fixed also drew attention, citing the fact that a central decision was made.

Solana’s network also crashed on June 1 of this year, when a transaction error brought the chain to a halt and led to a four-hour outage. Bons stated that this was also due to centralization issues.

Then there was a network outage due to arbitrage bot spam in January 2022. Solana also suffered multiple outages in late 2021, and that track record was not good for his reputation.

Solana NFT market is growing

However, despite the series of negative incidents, the Solana ecosystem is growing steadily. NFT Market in Solana grew to 24% market share in September. The month saw more than $135 million in transactions, with MagicEden controlling trading volume over 90% of the market.

This was despite Solana hitting an all-time low in NFT sales volume in July 2022. The ecosystem has managed to bounce back, but it remains to be seen if it will last.

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