Solana has been fondly referred to by community members as the ‘Ethereum killer’ but as time has passed, it seems the network has failed in its mission to become the leading smart contracts platform. Its proximity to the likes of FTX crypto exchange and Alameda Research have also dented its reputation. And even now, as the network struggles to return to its previous glory, one analyst has presented multiple reasons why the Solana network, for lack of a better term, is ‘f**ked’.
A commodities and crypto trader known as Jonah on X (formerly Twitter) took to the social media platform to give reasons why he thinks that the Solana network is doomed. The lengthy and two-part X post touched on a number of issues that the network is facing, as well as its affiliations to entities that have ended up costing crypto investors money over the years.
The first thing that Jonah points out is the pitch used by the likes of FTX, Jump Crypto, and Multicoin in what was seemingly the branding for Solana. As the analyst points out, these entities being able to see people’s transactions and then front-run them to make money would only work when investors have no other alternatives. However, with a number of better options, Solana is having a hard time keeping up.
Jonah also points out that the network is centralized and in the current climate, only decentralized networks will be able to survive. Additionally, developers are not really incentivized to build on Solana. As the analyst points out, even if developers are incentivized to use SOL tokens, they still have to worry about the large stash of SOL tokens being held by FTX. “Nobody wants to build during the bear to get dumped on during the bull. This will result in a sustained dearth of innovation and a shitty/impaired ecosystem,” he said in the post.
Another reason why Jonah believes the network is doomed is the fact that he believes that the technology is not good enough to solve the problems it is trying to solve. Then closing out the first post, Jonah says: “Mustache Warrior at Jump is a quasi-criminal now and can no longer pretend to marshall infinite resources in support of Wormhole and other Solana-based technology for which there is no end user demand,” likely referring to Jump Crypto president Kanav Kariya.
Don’t Be An Idealist, Analyst Says After getting some negative responses to his initial post, Jonah made a follow-up post addressing these responses. He cautions investors and traders about being idealists instead of actually being objective. “Trading is about being objective; idealists get carted out on a stretcher,” the analyst explained.
He also explains that Solana failed to deliver on its promise and “missed its window of opportunity to capitalize on Ethereum’s lack of scaling solutions and consequent undersupply of blockspace.” He also doesn’t seem to see redemption in the future of the network as well, as he says it’s too late.
“Building on Ethereum/ETH L2s is a no-brainer. $SOL may provide beta to crypto, but I would not bet on it providing any alpha until SOLETH depreciates by another 50-90%,” Jonah concludes.
SOL sees recovery to $24 | Source: SOLUSD on Tradingview.com Featured image from Bitcoin News, chart from Tradingview.com
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Scott Matherson Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.