The Solana (SOL) token is one of the biggest losers on the crypto market with a price drop of around 30% in the last seven days. After the US Securities and Exchange Commission (SEC) declared the Solana token as well as numerous other altcoins as securities in its lawsuits against Coinbase and Binance US, the SOL price plummeted.
In a worst-case scenario, the SEC could sue Solana Foundation in the same way it did Ripple Labs in December 2020. Thus, the bottom of the SOL price’s slump might not be reached yet, if the SEC really takes this step and thus causes more investors to panic sell.
Solana Community And Developers Oppose The SEC
The Solana Foundation has now responded to the SEC’s classification of its SOL token as an unregistered security. In a statement, it said, “The Solana Foundation strongly believes that SOL is not a security,” adding “SOL is the native token to the Solana blockchain, a robust, open-source, community-based software project that relies on decentralized user and developer engagement to expand and evolve.”
While one developer at a recent event dismissed the SEC’s legal action, stating that developers “give a shit” about what the SEC thinks, there is a part of the community that is already thinking about possible ways to solve the SEC issue.
The founder of Degen Picks launched a poll within the Solana community on whether the blockchain should fork to avoid the regulatory issues with the SEC. A total of 2,050 people participated in the poll, 39.9% answered “yup” while 24.2% answered “stfu” (shut the fuck up).
OK hear me out. It’s time to fork $SOL. SEC dissapears, FTX bankruptcy can dump on themselves. $BTC and $ETH both did it.
— Caps² (@capsjpeg) June 10, 2023
Surprisingly, the idea is supported by Abracadabra founder @HGEABC. Via Twitter, he responded to the poll, writing, “Bold but not a bad idea actually. Community fork Solana will get rid of SEC issue. No bankruptcy will dump on you for next 3 years continuously. ETH is a fork of ETC and doing well. Blink twice if you agree.”
A user then asked the Abracadabra founder if he could get Solana Labs co-founder Anatoly Yakovenko and his team to work on the fork. The Abracadabra founder speculated that they “probably will” if they are sued by the SEC. “Then work on the fork save their own problem too.” Remarkably, the Solana Foundation has not yet responded to the poll.
Overall, however, there are mixed opinions in the community about the fork. It’s also worth noting that proponents don’t have a specific plan for a fork yet.
Nevertheless, according to the founder of Degen Picks, a fork could not only solve the SEC problem, but also FTX bankruptcy. A copy of the Solana chain could be given a new set of rules and parameters. The FTX wallets could be blacklisted and not receive the new token.
SOL Price Keeps Falling
At press time, the SOL price was trading at $15.15. The 1-day chart shows the dicey situation for the SOL price. The bulls need to defend the $12.82 level at all costs to prevent a fall to the December 2022 low at $8.02.
To the upside, the $16.00 level is the key resistance for now. With an RSI of 26.2, SOL is in oversold territory and could initiate a recovery.