The U.S. Securities and Exchange Commission (SEC) has labeled Solana as a security in its ongoing lawsuit against Solana, Coinbase, and Binance. This led to various exchanges, including Robinhood, removing SOL from their listing. This development has negatively impacted SOL’s price and prompted numerous validators on the Solana network to consider a fork as a means to protect themselves from the agency’s scrutiny.
Anticipation of Upgrade on SOL!
The Solana community is seriously contemplating a potential fork of the network, believing that it might ease the SEC’s examination. Additionally, a fork could potentially alleviate the selling pressure stemming from Alameda Research’s significant holdings of SOL tokens.
Alameda Research currently owns 8.2% of the total supply of SOL shares and is expected to sell a significant portion of it. This could lead to a drop in Solana’s price on the charts. HGEABC, the founder of Abracadabra, was among those who shared support for a fork of the Solana network. However, within the community, there are opposing views against this idea and the concept of a fork. While Solana has made no official statement regarding the possibility of a fork, they have responded to the SEC’s classification of SOL as a security.
Solana’s team disagrees with this classification. The foundation has also emphasized its desire for policymakers to engage constructively in providing legal clarity for entrepreneurs operating in the digital assets space. They highlighted the strength of the Solana builder community and their ongoing efforts to create innovative projects and products.
Data from Santiment!
Despite Solana’s attempts to alleviate concerns and ease fear, the overall sentiment around SOL remains negative. In fact, data from Santiment reveals a significant drop in the weighted sentiment around SOL, showing during reporting that negative comments are outweighing the positive ones.
Parallel to the sentiment shift, SOL’s price has recorded a decline in this period. The trading volume, which recorded a temporary increase in recent days, also decreased within the same timeframe. As the Solana community navigates the potential outcomes of the SEC’s securities classification and delistings, the possibility of a fork continues to be discussed. The upcoming few days will shed more light on the community’s final decision and its impacts on Solana’s future.
