The high concentration of whales threatens the price stability of the Solana token
2 min readSeveral members of the crypto community have criticized the three co-hosts of the All-in Podcast for suggesting intentions to get rid of the billion-dollar Solana token holdings just because they could.
The high concentration of whales threatens the price stability of the Solana token
Social Capital CEO Chamath Palihapitiya, venture capitalist Jason Calcanis and David Sacks revealed in a podcast that they all invested billions of dollars in Solana. However, the light exchange of views on the liquidation of their tokens was soon characterized as a very capitalist behavior, which the blockchain community is fighting against.
A Twitter user with the pseudonym @GooseOfCrypto said the three were just bragging, without wondering how the FUD could affect the price of the cryptocurrency.
“A few billionaires who have allocated capital are joking about pump and dumping Solana.”
According to crypto influencer Peter McCormack, such billionaires are more concerned with using the concept of Web 3.0 to get rich than focusing on the benefits of this technology for humanity.
“These people want to define the Web 3.0 narrative. Hahaha, I have big bags, hahaha I’ll get a big discount, hahaha, I’ll throw them out, hahaha. “
Concentrated ownership results in market manipulation
The blockchain data analysis company Messari has published a report on the distribution of token ownership across the seven most popular public blockchains in addition to Ethereum and BTC. As of October 30, 2021, Messari found that 48% of all Solana tokens were owned by entities such as venture capital companies and investors.
Another 13% was set aside for foundations, ecosystem grant funds and participation fees, and almost 50% for incentive community ecosystem funds. Only a small part represents public participation.
Solana tokens were distributed in five different funding series with only one public sale. According to blockchain explorer Solana Beach, SOL has an offer of 301 million coins in circulation and a non-circulating offer of 207 million SOLs.
The data also revealed that most alternative blockchain ecosystems are less focused on public participation. In fact, foundations and community initiatives that support the development of these ecosystems are a higher priority.
Messari pointed to the unfair practices of launching public blockchains, which ultimately lead to centralized control and manipulation by whales.
“Let’s be honest, concentrated ownership can permanently impair a blockchain’s ability to become a credibly neutral public infrastructure.”
