Exposing Solana: Everything they don’t want you to know
https://www.youtube.com/watch?v=SlPgee7dpO0
Transcript:
lies manipulation scams fraud this is the foundation that solana is built off of and because of this solana has no future what did you say yes you heard me right solana blockchain has no future and i’m going to share with you exactly why that is the case if you are an investor in seoul or maybe you’ve just been looking into it recently then this is a video you definitely don’t want to miss i’m going to provide hard data to not just opinions data that myself as well as others have been compiling for years data showing how nearly everything about solana has been faked
or manipulated and much of it is still happening today everything from their tvl to volume to tps to users is constantly being manipulated to make things look so much better than they truly are. Solana is really the ultimate fake it till you make it chain that worked its way towards the top, but the house of cards will collapse when truly put to the test.
So let’s dive into some hard data and you’ll see why Solana has no future. I’m gonna go over about 20 different metrics, data points, and situations that highlight not only the issues Solana has no future. I’m going to go over about 20 different metrics, data points, and situations that highlight not only the issues Solana will face, but also showing many of the lies and manipulation that have occurred over the years.
I’m not talking about the basics most know too, such as how the chain has gone down 11 times in three years. Yes, 11 times in three years. And Maxie’s brushed it off as if it is completely normal. So I’m going to break this down into four sections. Past lies, current lies and manipulation, the reality of things, and the future or lack thereof of Solana.
Stick around to the end since I’m saving some of the biggest ones till then. But before I begin, I do want to say that I was an early Solana adopter and I used the chain a lot back in the early radium and step days so I get the appeal but as soon as I began learning much of what I’m going to share in this video I ran away fast you’re going to see why too let’s begin by going over some of Solana’s shady past some of which you may know some you may not first token supply and I’m going to start off going over an
article from Justin Bonds it’s a little over a year old. As you see here, a Solana critique lies, fraud and dangerous tradeoffs. He’s got some great content in here. And for you that are watching, I will link everything that I share down below, starting with their token supply, which they lied about their initial token supply.
In early April 2020, the Solana team stated that the total circulating supply was 8.2 million. However, in reality, the total circulating supply was 8.2 million. However, in reality, the total circulating supply was actually above 20 million, betraying the promises of the original investment terms.
And as you can see, there is documentation from Telegram and Twitter. All that is here and it’s provable. They actually have all this information showing that this is the case. and the team tried to completely cover it up. As you can see here, it was also especially difficult to verify these claims as there were no explorers capable of checking what was really happening.
When the Solana team was confronted by this, they simply claimed it was up to the community to build out this functionality. Yes, this is a message from Anatoly, the founder, saying that if you want to find out this information, basically you have to dig for it yourself because we’re not going to build an explorer. And well, that’s what some people did.
So by the end of the month, a third party found an unlocked Solana wallet containing 13 million tokens. So someone was able to dig through and find 13 million tokens. And the team, first they brushed it off and then they ultimately tried to explain it saying that 11 million tokens were loaned out to a market maker while promising to get these coins back and burn them within 30 days this promise was made on numerous occasions in the following weeks and here is the article that the solana foundation put out showing how they initially put out 8.2 million tokens,
and they explained how they broke it down, loaning out 11.36 million tokens for liquidity provisioning. And then they go on to say, we plan to reduce the circulating supply by removing the 11 million supply from the market within the next 30 days. After removing the supply, they plan to burn the tokens. Well, that didn’t happen.
On May 23rd, the Solana team announced that they were only able to retrieve 3.3 million coins out of the 11.3 that they had loaned out, deciding to instead release 8 million new Solana tokens into circulation to meet their commitment to burn without any announcement beforehand. So this basically doubled the circulating supply to 16 million and basically just brushed it off from there.
So as you can see, they lied about the token supply. This was early on in the days, and they probably never would have fessed up to it if people wouldn’t come forward. This is part of their shady past, but there’s so much more than that as well. So we’re also going to go into how they faked their TPS.
You may know some of this and you probably even are aware of it going on right now so for the longest time they were faking their tps numbers and the reason why is because they count all consensus messages in their tps and this is something that no other blockchain does and for the longest time they wouldn’t fess up to it again it was something that the community and people had to dig into to find out.
And here is a graph showing their TPS. And see the tiny pink bars at the very top? That is actual true TPS that most blockchains count. Actually, it’s even less than that. And I’ll go over more of that why in just a little bit. But the teal bar here, those are consensus messages that other blockchains don’t have and don’t count.
So when they were saying that they did 4,000, 4,500, 5,000 TPS, they were inflating that by over 10x. And the crazy thing here, as you can see from Justin’s article, is that there’s no good reason for this design choice. The problem with this design is that there’s no good reason for this design choice, as the problem with this design is that validators still have to process these transactions.
Validators have to pay the transaction fee for these consensus transactions, unlike almost all other blockchains. On top of that, on September 4th, Solana was experienced a large amount of transaction failures and the official Solana Twitter account came out and claimed the network was brought down by doing 400,000 TPS and this was an objectively false claim designed to make Solana look better than it really is here is the actual tweet that they put out showing that the transaction load peaked at 400,000 TPS the problem with
this is it was completely fake most Most of it was not real. This claim of achieving over 400,000 TPS over the time period was categorically false. This is because if transactions do not make it into the blockchain, they cannot be counted towards the TPS limit. And these were not making it into the blockchain.
So it was heavily inflated by over 100x next is their fake TVL this was also something that happened early on in Solana’s history and this one is crazy and a lot of people don’t know about this on the 5th of August 2022 a bombshell Coindesk article exposed that the majority of Solana TVL was fake this was later confirmed to be an open secret within Solana as two developers pretended to be 10 plus devs and counted the same TVL over and over.
This accounted for more than 70% of Solana’s 10 billion TVL at its peak. And I’ve got the article here as well from Coindesk that they mentioned. Master of Nons, how a crypto developer faked a DeFi ecosystem. Check this out. This is absolutely wild. And it would have gone, again, unnoticed if it wasn’t called out.
So this guy named Ian, as you can see here, devised a scheme to maximize Solana’s TVL. He would build protocols that stack on top of each other such that a dollar could be counted several times. He did this over and over again. So by counting, Sabre and Sunny, two protocols, comprised $7.5 billion of Solana’s $10.5 billion TVL at their peak.
Billions of these dollars were double counted between his two protocols. And he knew this. He did it on purpose. I believe it contributed to a dramatic rise of Sol, Ian wrote at the time, when it traded at $188. Like I said, they faked their way to the top with various things like this, not only with their TPS, but TVL.
And you’ve got someone here admitting it, that he believes that what he did drastically helped push Solana up further and get where it was higher up in the list. So they truly are the fake it till you make it chain.
And I’m going to show you why later they still haven’t made it continuing on he wrote that it bothered me that ethereum tvl was so much higher than solana’s crazy so he wanted to create a system very similar to what was going on in other protocols but he took it to another level thus what he did is he created more anonymous profiles. He created profiles over and over again and double stacked this liquidity, which is crazy.
So this goes to show how their TVL was so incredibly manipulated. And as you can see, it helped push Solana up the list and help it gain recognition all by cheating and lying. And this is part of their past. Now we’re going to go into the current stuff that’s happening and the current lies because trust me this has not ended it is still going on so let’s go check out some of their TVL lies that are currently going on here here we’ve got a screenshot of basically two junk coins put in a protocol that are consisting of about 70% of the total value locked in this protocol. As you can
see here, $251 million locked between two tokens that were complete garbage, completely manipulated. So $251 out of this $320 million locked total, completely faked. And look at the volume here, $314. But TVL, 251. Again, completely manipulated. Here we’ve got something from Waz, who likes to point out a lot of this stuff.
He’s been all over this. So Meteora on Solana is reporting a 20 billion daily trading volume. But one problem, two pools accounting for 99.9% of volume are again, garbage junk pools. Look at this, you can see the volume right here. Two garbage pools, SWIFT, CHADS, SWIFT, MMM, that account for almost 600 million of their 24 hour volume.
And look at their TVL, $365, $188. Yet they’re somehow doing 410 million volume on $365. Come on, this is just absolutely insane. And then you’ve got an article here from Bitcoin.com News. And this is just one of dozens. Solana’s stablecoin transfer volume drops drastically amid scrutiny.
Solana’s daily transfer volume has decreased from a range of 75 billion to 100 billion daily to around 7 billion daily this happened overnight additionally a crypto advocate expressed doubts about the legitimacy of solana’s previous stablecoin transfer volumes indicating the metrics were highly overstated and this is something that again that was brought to the attention of everyone solana’s daily stablecoin volume surged from 200 to 300 million to an astounding 30 billion within six months. Come on, 200 to 300
million to 30 billion in six months. A figure that appears highly dubious. The primary culprit behind this inflated volume is the Phoenix DAX, where all orders filled or unfilled are recorded on chain. How ridiculous is that? Even if the order is not filled, it’s still recorded as volume, which is absolutely ridiculous.
So this led to an artificial boost in transfer volumes. Much of the overall volume was driven by two sources too, an MEV bot and also Phoenix Dex, which accounted for roughly 1 trillion of total transfer volume over the last month. 1 trillion, all from an MEV bot that was stealing from you, and that Phoenix Dex that was doing all manipulated trading.
Everything was completely manipulated. Here it is from CoinStats. Solana faces crisis. Stablecoin volume plummets amid wash trading allegations. Astonishingly, Solana’s daily stablecoin volume plummets amid wash trading allegations astonishingly Solana’s daily stablecoin volume plummets from 75 to 100 billion to just 7 billion in a single day could this suggest the prior data was manipulated this has been a concern for months even with the new 7 billion figure which is down 90 there’s speculation that up to 90 of even that volume could still be inflated. So how crazy is that?
Their volume drops 90% and it’s still mostly manipulated and fake because of the fact that Solana’s transactions are so cheap to perform that people could just buy and sell over and over and really fake all the volume and TVL on the entire network. It’s crazy. And it is designed to do this. So let’s go back and look over here. Something else from Woz.
Four addresses, two bots, and two Phoenix Vaults account for $150 billion out of the $160 billion of USDC volume on Solana the past days. $150 billion out of $160 from four addresses, two two bots and two Phoenix vaults absolutely insane and you could see all this is here like I said all this is detailed you can see this not only in the explorers but also in these protocols none of this is made up this is all hard data and facts all manipulations and lies and this is still going on this happened just a few months ago here is from Artemis terminal that shows exactly the time when the volume completely plummeted.
As you can see, right around early June when they were doing 70-ish, 75 billion, 65 billion in, this is USD volume a day. And then overnight, it drops down to six five six billion volume just completely plummets and so the reason why this happened is because and it’s actually a good reason Solana Foundation decided at this point to remove their support from nodes that were performing in malicious sandwich MEV attacks basically stealing from from users.
And the main address that was accounting for over 90% of their volume, well, they were supported by the Solana Foundation. So once they lost all their stake, they weren’t able to perform all the sandwich attacks any longer and push these transactions through. That is why the USDC volume plummeted, went off the face of the earth, just showing that the numbers were completely manipulated beforehand and are still being manipulated even at the current levels.
This happened just a couple of days ago, July 24th. So Victor Boonen here posts, can someone explain to me what’s going on with radium protocol? Seeing a bunch of very low TVL, but very high volume pools, 100 million daily volume with 100 tvl and this again can be viewed in radium look at this we’ve got all of these pools this is the liquidity right here the tvl and this is the volume that they’re doing on a daily basis 7.9 million that’s why it says over here they’re doing over a thousand percent of their TVL and these are happening on a daily basis all completely faked and
manipulated because people are just buying and selling over and over again big amounts or even small amounts because the transaction costs are so cheap to do so they’re able to drive up ridiculous amounts of volume and completely manipulate the numbers to make it look so much better than they truly are this was also something from just a few days ago probably one of Solana’s biggest grifters Marty party he posted Solana monthly unique users hit 30 million worldwide with user median 16 transactions a day both new records Solana monthly unique users as he is sharing a
chart of monthly active addresses and we all know that it is nowhere near 30 million in fact I’ve got another chart that I’ll show you in just a bit that it shows that it is not even 10 of that it’s not even five percent of that and these are addresses and that’s because there’s all these bots people have multiple accounts i have multiple accounts i have multiple wallets as well you probably do as well so these are monthly active addresses and here’s this guy solana monthly unique users so you need to be careful
who you follow in this ecosystem. He is just one of the worst for sure. Another thing from Waz here, three of the seven of the top volume tokens on Solana are honeypots, totaling 77 million volume for the three tokens. Look at this chart. Again, three of the top seven in volume, 77 million, and they’re completely faked, and they’re basically scams to take your money.
So you gotta be careful of these as well. And this is just a tiny portion of what is still going on today. The one that I just showed you was just from a couple days ago. There are multiples that come out every single day. If I went over every single one of them that I had, this video would take hours.
It’s not hard to find all this manipulation. But unfortunately, people don’t really see it or they don’t understand it because they don’t look into it and they just see all these grifters and these people, such as Mert, who makes false claims and then people just believe him because, well, it sounds good saying 2,000 TPS, 4, 4000 TPS, 10 billion volume without realizing that 99% of it is fake.
And this is why doing your own due diligence is so important. And we’ve got so much more that we’re still going to dive into as well. Now, if you’re getting anything out of this video and you enjoyed, please go ahead and like and subscribe. That would be super helpful as these videos take a lot of time, especially to put together all the content.
And if you’re not getting anything out of it, well, you’re probably Solana Maxie and you may have tuned out long ago anyways. So next, we’re gonna jump over and discuss the reality of the situation and what is really going on. So here is a chart, a breakdown, that Dave, InvalidEU TXO did.
going on so here is a chart a breakdown that dave invalid e-u-t-x-o did what he did is he took four blocks and he broke them down he looked at them in depth and here’s the block number so you can verify these for yourself and here’s the transactions that happened in this block right here 2292 here is the breakdown of what happened. Vote. These are consensus messages between validators. 1989 of 2292 are vote transactions.
That’s over 95%. And then you have stuff like compute budget, systems, update price, BPF, Oracle, scan, unknown. Most of these things that other typical blockchains don’t count, and they shouldn’t be counted for the most part. The only thing that’s really counted are actual transactions from users or even bots that hit the blockchain.
You want to know how many that is? Five. Five out of 2,292 are actual transactions. Less than 2% are actual transactions. And here is four different blocks that he broke this down to show exactly what is going on. And the numbers are consistent. Here we’ve got eight, seven, eight. The heavy majority of all these are votes.
So when you hear, again, Solana claiming that they’re doing 1651 transactions, you have to realize that 80% or more of those are consensus messages that most blockchains do not count. On top of that, many of them fail. And look at how many fail here. 188, 1, 183, 11.
So they also have a lot of failed transactions too, which most other blockchains don’t have, or at least not nearly to this extent. Here’s an article too. Why does Solana have so many transactions? Solana boasts more than six times as many transactions as Polygon. 18.9 million non-vote transactions to only 2.9 million transactions. So at first glance, it would seem that Solana is processing a lot more volume and is thus a lot more popular.
But the answer lies in the source of the transactions. Only a small portion, roughly 7% of Solana’s non-voting transactions can be traced to transactions related to DeFi and NFT usage. Read that again, 7% of non-voting transactions. So this doesn’t include all transactions since they count voting transactions.
If you count voting transactions, it’s less than 1% that are actually related to DeFi and NFT. And here’s the breakdown of what a lot of the transactions are. Here’s another. This is a graphic that shows the exact breakdown. Here’s the block number. Here’s the transactions, 2,971 transactions, and then 0.66% that is other random crap. So only 0.38% are actual useful transactions, 13 out of 3,351.
Let’s go check out this from Dune. This breaks down bots versus non-bots. On average, there are 90% bot transactions compared to non-bot. And I know a lot of people say that it doesn’t really matter. And I get it. A lot of transactions are bots. They always will be, even in Web2 in our current lives. But the funny thing is roughly around 60% of all Web2 in our current lives.
But the funny thing is, roughly around 60% of all Web2 transactions today are bots. Yet on average, Solana has over 90%. So their bot usage is far higher than even today’s metrics in the stock market and everything else that we do today in Web2. So again, most of the chain is completely run by bots. 90% on average of their transactions, 89.4, 90.3, 92%. It’s crazy.
Here’s something that after discussing with Toli for a while, we finally were able to kind of back him into a corner and get him to admit something. You’re conflating a bunch of things. No one is saying more transactions equal more users, which is crap because I don’t know how many times I’ve seen him, Mert, or Marty say that more transactions equals more users, because that’s how they like to twist things.
Most of the transactions are generated by oracles and market makers and arbitrage bots. All those are machine generated, which is expected because Solana is the only chain cheap enough to support that kind of load. The users are tracked as daily unique signers. And then you have these two protocols that you can do to check these two do a decent job tracking these so seven tps from humans tracks considering that ethmatic and salon have a similar number of daily actives now this was about a year ago when solana was doing around 20 million transactions a day. And I think they were recording around five or six hundred. But as
you can see, only seven TPS came from actual users like you and me. The rest, all consensus messages or bots or garbage transactions. So again, less than three percent are actual transactions that most other blockchain count. And I know they’ll fight this because they’ll talk about this happening on other chains, but it doesn’t happen to nearly the same degree on other chains because of the fact that Solana transactions are so cheap that it promotes doing this plus they promote doing MEV which is theft it
is truly theft and I’m gonna show you a little bit more on that in just a second here so here we’ve got a really cool tool called sandwiched.me. This shows you live sandwich transaction. I’m actually going to go ahead and pause this right here so you can see every couple seconds a transaction is sandwiched and it shows you exactly what happens and how much the person made or how much the bot basically made.
And these are transactions in which you as a user are having your money stolen and this happens every couple seconds it is non-stop if it’s not a sandwich attack it is a front run and Solana promotes this and I’ll again I’ll put all these links down below so you can check these out is this is wild you’ll see in real time how many people are being sandwiched and how much money they’re losing. And this happens to you all the time.
This happens on pretty much every single transaction you do on Solana. So while they say it is cheap, maybe costs a hundredth of a cent, that could be the case. But if you’re swapping $100 of Sol into USDC and you only get $99.50, well, that transaction really cost you $0.50. And that whole $0.50, well, that transaction really cost you 50 cents.
And that whole 50 cents wasn’t from platform fees. Part of it was due to being sandwiched or front run. So this is outright theft. And this is actually part of MICA in the EU, where they finally are coming out and saying that MEV is theft, and they’re trying to crack down on this. This shows a sandwich bot on Solana that pocketed over 30 million dollars over the past one to two months 30 million dollars doing nothing but sandwich attacks and this was not long ago june 15 2024. so this one person 30 million dollars basically stolen from users probably
like yourself if you use solana frequently here’s something that solana floor or jupiter exchange actually launched not too long ago which is i find really comical they launched this end of april this tool allows you to tip during a transaction so you don’t get screwed basically as you can see from their message it says so you could hide their transaction from searchers looking for mev opportunities and then i just love this comment down below so you got to pay to not get mugged, basically. Yeah, that’s basically what you’re doing. You’re tipping the protocol a little bit
of money so they hide your transaction and malicious actors can’t steal from you. How ridiculous is that? Is that really a solution? No, it’s crazy. This is great too. So you guys might be familiar with this podcast. We’ve got Zanno here, which I believe is the co-founder and CTO of Jito, talking to Mert, number one Solana grifter.
Everyone knows he’s got me blocked. To be honest, I’ve got an entire folder of crap that Mert has said or done over the years, but he blocked me. So I can’t even show it anymore, unfortunately. And then you got Dan Smith from Blockworks.
But I’m going to go ahead and play this so i can’t even show it anymore unfortunately and then you got dan smith from blockworks but let’s i’m gonna go ahead and play this so you can listen to it this is wild uh what do you think the end game of me beyond solana starts looking like i think in general you have a few you have a few block builders um that sort of compete on whether it’s through auctions or whatever like uh you know for example you could have let’s say you have five builders um the way they can the way you determine who gets to build what block is they bid ahead of time, maybe, let’s say, 100 slots, and they get the next 100 consecutive slots that they had won the bid for.
But in general, I think it just boils down to a few sophisticated builders that basically build 100% of the blocks on Solana. So he’s basically saying there that he believes in the future that roughly five builders are going to build 100% of the blocks on Solana. And this is clearly an issue that shows how Solana is leading more and more towards a centralized protocol.
And this is not a good thing at all. The reason why is how their staking works and how their block building works. For one, it’s deterministic. So you know exactly who’s going to build a block well in advance so it can attack the leader and take them down this has been done before but that person also knows well in advance and they’re the ones that are creating all the blocks so even the co-founder of JITO who is heavily involved in this ecosystem believes that there’s going to be roughly five builders that build a hundred percent of blocks in the future. How crazy is that? And so that is the reality of what is currently going on. So much
is still being faked and manipulated every single day. And I’ve got dozens more pieces and documents showing this happening on a daily basis for the Solana ecosystem. This is easy enough to find if you just look for it yourself, or you could ask me, I’ve got plenty more to share.
Now I’m going to go into the future and I’m going to show you exactly why I’m telling you Solana has no future. Here’s a video. I’m going to show a couple of clips from this because he’s got some great stuff. So I’m just going to let him go right into it. I’m going to talk about it. It doesn’t work out for them. Their fee revenue is less than the cost of maintaining their network, which is basically the token inflation that’s used to pay their network validators.
So until that math changes, Solana relies on people buying their token for speculation in order to sustain their network and keep them from getting into a death spiral. Also, keep in mind that Solana has low fees by design, so they can’t just jack up their fees to solve this problem, as that would ruin the value proposition. So the only way to solve it is for Solana to get mass adoption on their network, like millions of transactions per day, so that collectively they can generate enough fees, even though the per transaction amount is small.
So basically what he is saying there is that Solana is not very economically sustainable. Their super cheap transaction costs coupled with all the unnecessary transactions validators have to pay and high costs for node providers will likely lead to major issues in the future. Currently, the network is almost entirely sustained by inflation, and I’m talking a lot of it, to the tune of around 10 million a day of new Solana minted every single day.
As inflation decreases over the years too, the network has to do hundreds of thousands of TPS just in order to sustain the network or continue to steal from the users. And here is their financial statement that you could find in Token Terminal. So this goes and shows the tokens that are minted and it shows them as an expense.
As you can see, and again, this is totally in Token Terminal. You could find this. They are in the red losing over $200 million, sometimes $300 million every single month because that’s how much is being printed in Solana tokens and diluting the value.
losing over 200 million sometimes 300 million every single month because that’s how much is being printed in Solana tokens and diluting the value because their fees and their revenue aren’t anywhere near able to cover the cost of the network as you can see here 21.4 million is the revenue for July of this year but they’re printing over 274 million just to keep their network afloat and here is from Masari that shows their their growth on average over 70,000 tokens enter circulation every single day which is just absolutely insane this is where I came up with a number of over 10 million and
you could see how it grows again you can view this all in masari on average 70 million tok or sorry 70 000 tokens enter circulation every single day and here’s a chart of their unlocks too which gets even wilder especially if you look into 2025 you can see how much is unlocked every single month we just had a unlock. 1.
97 million SOL was unlocked and it’s going to continue through the year. But next year is going to be wild. Next year in March, almost 10 million Solana tokens are unlocked. And this is on top of the inflation that also happens. So over the course of 2025, there’s going to be over 19 million Solana unlocked over the course of 2025. Now take that and add it on top of their daily inflation, and that is an insane amount of sell pressure.
So without massive continued buy pressure, the Sol token will really struggle. And I’m going to show you in just a bit why that’s not going to come. So next up, we got another clip from the same guy here. Jump Crypto also used to flex their massive war chest to support Solana and bail out its ecosystem projects when needed.
But now that their leaders are potentially facing legal trouble, I’m betting that their parent company, Jump Capital, will rein in the crypto department as it’s not worth jeopardizing the parent company over one of its smaller subsidiaries. So Jump Crypto is one of the biggest supporters and investors in Solana, heavily tied to FTX and Alameda as well, and stuff that doesn’t put any of them in a good light. And in fact, Jump Crypto is actually under investigation right now.
And they’re the ones who was also building Fire Dancer, which you probably heard of. And that has been pushed out even a little bit further. A lot of people were expecting it to come out in the next couple of months or later this year. You’re not going to see it until early to mid next year at the absolute earliest.
We’re going to go into some of the stuff that Jump Crypto is looking at right now. And again, this is one of the biggest supporters of Solana. Solana Foundation and Solana team is heavily in bed with these guys, as well as FTX and Alameda. If you really dig hard enough, you could see. And I could do another video on it because I’ve got plenty more on this. But here’s an article from Cointelegraph.
President of Jump Crypto steps down. Kanav Kariya announced his resignation amid reports of a pending investigation into Jump Crypto’s activities and several incidents dating back to 2022. ecosystem impacted the trading firm, spotting an investor lawsuit alleging that Jump Crypto reaped $1.
3 billion in profits by coordinating with Terra founder Doquan to manipulate the price of Terra’s UST with the goal of maintaining the algorithmic stablecoin’s US dollar peg. And if you recall, there was a lot of information about this being tied to Solana and FTX. A lot of funds used to try and take down Terra. And they’re all tied together here. Alameda, Solana, FTX, Jump Crypto.
Later that same year, concerns surrounding Jump Crypto’s exposure to FTX began to surface. So they’re currently under investigation for some of the stuff that was going on. Here’s another reason why Solana has no future. Solana’s complex and experimental design. I think VanEck puts it best in their Solana has no future. Solana’s complex and experimental design.
I think VanEck puts it best in their Solana deep dive report, when they say that Solana’s system is experimental at the end of the day. There’s no formal verification of their consensus mechanism, and it’s hard to predict potential points of failure because of the massive amounts of data flowing through the system.
So while they have added several fixes to address those problems, it’s still difficult to ensure that no new problems will pop up in the future. And this is a big problem because no one’s going to build a mission-critical financial app on a network that doesn’t give you some sort of performance guarantees, right? And he brings up such a great point here too.
Without having formal verification, you cannot prove really that what you’re trying to do is gonna happen and that you’re not gonna run into issues in the future. And a lot of other protocols do have some form of formal verification. And the point that he makes that is so powerful here is no major institution is going to build on top of something that they’re not sure is going to have issues in the future.
And that’s exactly what is going to happen here. Because Solana, without formal verification, major things can happen at any given time, as we’ve seen happen with 11 outages in the past three years. And they’re going to continue to happen, maybe at a slower rate.
But do you think major institutions really want to take that risk and have the entire platform go down or even have data lost? No, I’m telling you, they definitely don’t. Next, we’ve got a great video, some really big investors, some billionaires here. These are going to be the whales that are going to be dumping on you guys. And this was posted about seven months ago. You might know Chamath Palpatia.
He’s part of this as well as two other guys. And just listen to this. This says it all. You better clear that Solana position. What’s your lockup? 24 months? Fuck no. He’s trying to sell it to me on text message. We’re negotiating discounts. I just had the fact that- Hey, you’re fucking the whole thing up.
Bro, you don’t think to be. I’m hodling. I’m hodling. You think I buy hundreds of millions of dollars of anything without a discount? Everything is a discount. Everything’s discounted. You want to clear that position in an LLC? Are you saying I got a billion dollars of Solana? No, bro. I’m saying I have one.
But you know, I brought it at a discount. But you’re holding, correct? Ish. Yeah, okay. Yeah, me too. Ish. I’m holding. Ish. Yeah, these guys are just waiting to dump on you and completely wreck you. And these are some massive players that still hold a ton of tokens and then there’s other big players that just bought from the ftx estate sale so there are some major whales out there with huge amounts of tokens that are ready to take profit at any sign of a good pump and that is more selling pressure on the solana token next we’ve got a
great write-up here from cardano yoda explaining basically one of the biggest issues with solana and how they lead kind of towards centralization as you can see here all blockchain networks can in principle be flooded with transactions there’s no difference between bitcoin cardano solana or ethereum the point is that the goal of a distributed network is to remain operational and available to users, even if a few nodes become suddenly unavailable for any reason.
In the case of client server architecture, if the only available server is flooded with transaction requests, it can become unavailable or only provide services to a limited number of users. If all clients connect to a single server, the server represents a single point of failure. And this is exactly how Solana operates.
Solana behaves similarly in that transactions are constantly pushed to leader validators. You remember how we were talking earlier about potentially five block builders creating 100% of the blocks? Well, that’s centralization. Five block builders. The network does not distinguish between transactions initiated by bots and those initiated by users.
That is a problem is that all users regardless of their geographical location or the wallets they use may have a small chance of success in submitting a transaction when solana is congested the reason is that although the validators alternate according to the schedule and the production of blocks they are constantly flooded with new transactions from rpc nodes so these primary centralized players that are building most of the blocks are getting spammed all the time.
Next up is about their token and how it is a security risk for users. And this is something that I talk about a lot with Ethereum and their ERC token. Well, the SPL tokens on Solana operate in a similar fashion. Well, the SPL tokens on Solana operate in a similar fashion. They’re smart contract-based assets that you could have completely wiped from your account by just signing a malicious transaction.
Something that can’t happen on a lot of other blockchains that have what’s called native assets. And I could share some information on this down below, but this is a major risk with Ethereum and EVM chains as well as Solana because of how their tokens are designed. And they have no way of securely telling you exactly what’s going to happen with the transaction.
And this is a major risk. This is why over a million dollars is lost or drained from wallets every single day on Ethereum and even on Solana. And it’s going to only ramp up as time continues. And these networks, as well as most L2s and EVM compatible chains, are the ones that are heavily affected by this, while others are not because they have native assets that are much more secure.
Now I’ve got so much more I can go into too, is from lies, manipulations, hacks, and things that have happened in the past that are currently going on. But all I can say is do your own due diligence. Really look into this stuff. Don’t believe me. Don’t believe anyone else. Look into it for yourself.
But I’m going to provide all the data that I shared in this video down below so you can verify it for yourself because this is not just an opinion. These are numbers that are backed up by the blockchain and by tools such as Masari, Artemis, DeFi, Lama, you name it. It’s all available data. You just have to dig for it. Some of it you have to dig a little bit harder than others.
But in the end, you’ll see that Solana is not only completely faked and manipulated, but they also have a really, really rocky road ahead of them because of their unstable economic security and everything else that’s going on, such as the whales that are just ready to dump at a moment’s notice and their security issues with their tokens and everything else.
And I wouldn’t be surprised at all to see Solana go down at least once more in 2024, if not more. Definitely once we start getting more users and volume, I think the chain is going to crumble. And that is because the numbers that they say that are doing is nowhere near what they are actually doing.
So imagine what happens when they actually get a million users, 10 million users, 50 million users. If it ever does get there, the chain will absolutely crumble. It will not be able to handle the weight of it and there’s many reasons for that such as their consensus messages that are always going to take up a large percentage of their total transactions let’s look at firedancer for example they’re claiming that they’re going to help solana do 1 million tps which is great first off there’s a video you should watch i can also link that below where the creator of it is saying that it’s not gonna happen anytime soon
and it still may not ever happen but anyways out of this 1 million TPS the overwhelming majority of it is still going to be consensus messages as well as bot transactions probably over 80 if not 90% of that, leaving less than 100,000, probably half of that, 50,000 for actual user transactions.
Do you believe that 50,000 TPS is going to be sufficient in the future? I certainly don’t. And once we truly get mass adoption, I think we’re going to need far more than that because currently we have less than half a percent of the world population involved in crypto on a daily basis. Not even 40 million users active on a daily basis in crypto. And if you believe that we’re going in the right direction and crypto is going to get adoption, then like me, you probably believe that we’re going to see hundreds of millions, if not a billion, two billion, three billion people come in in the next five to ten years.
And that’s another reason why Solana has zero chance of making it in the future because they’re not going to be able to handle the volume or any of it because everything they’re doing and showing right now is completely fake and if you think they’re going to be able to 100x that well good luck to you i certainly don’t many others don’t
