Solana Community Proposes Strategies in Response to SEC
In the wake of the US Securities and Exchange Commission (SEC) labeling Solana as a security, some users are calling for a fork of the Solana blockchain to create a new network.
In a lawsuit filed by Binance on June 5th, the SEC named Solana and over 10 other tokens as unregistered securities. In the worst-case scenario, the community is concerned that the SEC could file a lawsuit against the Solana Foundation, similar to what happened with Ripple Labs at the end of 2020. As of now, the lawsuit between the two parties has not reached a conclusion.
On June 10th, @capsjpeg, the founder of the Degen Picks project, conducted a survey to determine whether the Solana blockchain should be forked to avoid legal risks from the SEC. A total of 2,050 people participated in the poll, with 39.9% answering “yes,” 24.2% opposing the idea, and 18.4% expressing confusion.
— Caps² (@capsjpeg) June 10, 2023
Although the proposal is still relatively vague, it has garnered significant support from the Solana community on Twitter. In the comments section, some individuals discussed potential new names for Solana. For example, the account @TripsCrypto mentioned “Solano,” a name Jack Dorsey mistakenly used in 2022. Solana then briefly changed its Twitter handle to Solano as a sarcastic reference to the former CEO of Twitter.
Abracadabra, the founder of the NFT staking project Hadeswap, also supports this proposal. According to him, it is a “bold but not bad idea.” Additionally, he cited Ethereum as a fork of Ethereum Classic (ETC) that has been functioning well for many years.
“You won’t lose a significant amount of assets in three years,” Abracadabra said, alluding to the SEC vs. Ripple lawsuit.
Following that, a user asked Abracadabra if he believed that Anatoly Yakovenko, the creator of Solana, and the project team would choose to fork the network as proposed. Abracadabra speculated that they “might do so” if they were sued by the SEC. The Solana Foundation has not yet responded to the survey.
Overall, the community has mixed opinions about forking the network. Furthermore, no one has put forward a specific plan for the fork. Nonetheless, the founder of Degen Picks believes that the fork would not only address the SEC’s concerns but also resolve the lingering issues after the FTX crash. FTX wallets could potentially be blacklisted and not receive new tokens.
The SEC lawsuit has caused a steep decline in several tokens labeled as securities over the past week. Currently, SOL is trading at $15.48, a decrease of around 30% in the last 7 days. If it falls below the resistance level of $12.82, SOL could potentially drop to a record low of $8.02, last seen in December 2022.
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