Recently, a former Goldman Sachs executive explained why this could be a great time to buy $SOL, the native token of the Solana blockchain, despite all the doom and gloom surrounding the Solana ecosystem in the wake of the collapse of FTX.
Here is how Coinbase described Solana in a blog post published on 29 June 2022:
“Solana is a decentralized computing platform that uses SOL to pay for transactions. Solana aims to improve blockchain scalability by using a combination of proof of stake consensus and so-called proof of history. As a result, Solana claims to be able to support 50,000 transactions per second without sacrificing decentralization, and is one of the largest proof of stake blockchains by market cap.
“Solana aims to enable smart contracts to allow developers to build a wide range of decentralized finance (DeFi) apps, new crypto tokens, games, and more. When users stake their crypto, they make the underlying blockchain of that asset more secure and more efficient. And in exchange, they are rewarded with additional assets from the network, which are paid out as rewards.“
Prior to founding macro economic and investment strategy research service Global Macro Investor (GMI) in 2005, ex-Golan executive Raoul Pal co-managed the GLG Global Macro Fund in London for global asset management firm GLG Partners (which is now called “Man GLG”). Before that, Pal worked at Goldman Sachs, where he co-managed the European hedge fund sales business in Equities and Equity Derivatives. Currently, he is the CEO of finance and business video channel Real Vision, which he co-founded in 2014.
According to a report by The Daily Hodl, earlier this week, during an “Ask Me Anything” session streamed on YouTube channel “Real Vision Crypto”, Pal had this to say about Solana:
“I really like Solana and I understand that the chain breaks. I also understand that they are fixing it. I also understand that’s a no-no. And one of the elements was, it was concentrated in its ownership because of FTX. They are now able to liquidate it and so you’re getting rid of one of the issues.
“Solana itself, I think it’s doing something very clever. In cryptocurrencies, what matters is narrative. Bitcoin narrative, digital gold for example. Ethereum, the distributed Internet for Web3. So where do these other chains fit in? Well, Solana has and is building a narrative, which is the consumer chain…
“But the consumer Internet, these are the people who’ve done the deal with META, doing deals with Google. They’ve got stores. They’ve got clothing lines. They have a consumer feel to them. And I believe consumer adoption, not at owning cryptocurrencies, but the use of NFTs [non-fungible tokens] and other digital assets is only going to explode over the next few years…
“Solana reminds me of Ethereum back in 2018 when it was down 97% and nobody cared. And that was a great bloody opportunity.“
Currently (i.e. as of 10:25 a.m. UTC on 19 November 2022), according to data by CryptoCompare, $SOL is trading around $12.92, down 5.14% in the past 24-hour period, and down over 95% since it hit $259.96, which was its all-time high, on 6 November 2021.
On 7 October 2022, during an “Ask Me Anything” session streamed on the “Real Vision Finance” YouTube channel, according to a report by The Daily Hodl, Raoul had this to say about Solana:
“I like Solana. Yes, I understand it keeps breaking. Yes, I also understand that everybody knows that so there is no informational edge in that whatsoever. Therefore, if it survives breaking and it’s one of the largest crypto protocols and it has more activity than any other chain outside of Ethereum, then the likelihood that Solana participates well in the next up cycle is very high to me... So I like Solana, it’s one for me.“
Featured Image via Pixabay
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