It is about to have a crippling liquidation of 170 million soul that would crash the network, although solana is about 86 percent down from its all time. High solana today today is at risk of going to zero. I repeat, solana is at risk of going to zero. Welcome back everybody to altcoin daily. You subscribe for daily videos on everything going on in cryptocurrency lets. Talk about solana, if you are unfamiliar solana, is an open source, dapp platform, a competitor to ethereum, the ninth most valuable cryptocurrency by market cap in existence. A powerful tool for developers fast for everyone. Solana is a decentralized blockchain built to enable scalable user friendly, apps and dapps for the world over 2000 transactions per second over 79 billion total transactions, average cost of a transaction is cheap and they have over 1 000 validator nodes. Now, if you follow the crypto market every day, like we do if youre familiar with solana, you know that when solana describes itself as a decentralized blockchain, we could argue a little bit with that. I mean the fact is: helana gets turned off shut down every once in a while, so that the internal team can fix the problems of solana. It is what it is today. Solana is having a major problem, although solana is about 86 percent down from its all time. High solana today today is at risk of going to zero. I repeat, solana is at risk of going to zero or was at risk.

It might be fixed im going to update you everything you need to know in this video smash the like button. If you appreciate that – and you want to support our channel – and let me clue you in to what is going on with solana and cryptocurrency. First of all, there is a dap on solana, a product, a protocol called solend, the largest lending market on solana. It is about to have a crippling liquidation of 170 million sold that would crash the network. So people have been watching this. There is a large liquidation watch on solanas soul and protocol where a whale has deposited 5.7 million sold about 170 million and then borrowed 108 million stable coins. This alone accounts for a huge percentage of borrowing on solana, and now this position is under a liquidation threat. So a whale who could get liquidated is putting the whole protocol at risk of going to zero. The solana folks tried to get in touch with the whale to get the whale to restructure their loan. There are people who believe they know who the whale is its. Not clear how the discussion went, but the whale did not change the terms of the loan. The whale did not comply. This is a problem. The whale is not closing their position, see in most protocols like compound ave, maker, etc. These are the lending protocols, the blue chips on ethereum. This will result in on chain liquidations, thats whats supposed to happen.

In fact, we have seen many such large liquidations on ave and maker recently, and everything worked out as expected. However, for solana such a large liquidation in an illiquid market and unstable network, like solana, is likely to have vastly damaging consequences, and this is not hyperbole. Solana network has already gone down and halted a dozen times this year. So what will happen to seoul and the price of soul if this position gets liquidated like whats, about to happen from the sole team themselves? This would cause chaos putting a strain on the solana network. Liquidators would be especially active in spamming. The liquidation function, which has been known to be a factor causing solana to go down in the past. Letting a liquidation of this size happen on chain is extremely risky. Dex liquidity isnt deep enough to handle a sale of this size and would cause a cascading liquidation effect. Additionally, liquidators will be incentivized to spam, the network in an effort to win a very lucrative liquidation. So there are certain people who want this to happen, so they can make money. This has been known to cause loads of issues for solana in the past, which would be exacerbated by the problems at hand. So peep this, my friends. So what is soul? And what is solana going to do to stop this from happening to stop solana from essentially going to zero in a series of cascading liquidations? Well to prevent this? The soulland and solana team are proposing to literally steal the wales funds and execute otc trades, so somebody had the bright idea that, instead of just doing what the contract says, they will take over the position of the whale and liquidate these coins manually through an otc Desk this is unprecedented, but it gets better.

A dao was created specifically to be able to hold a sham vote where the system was closed for voting for a long time, and then a single large wallet voted yes to this proposal so understand the specifics. The dao was spun up less than 24 hours ago. 98 of the yes votes came from one unidentified whale wallet. They gave their users less than six hours to vote on this, and the voting site was down for three hours of the vote because wait a minute. Just so i understand this correctly: one whale has leveraged a huge amount of solana, so much that if the price drops and this wallet gets forced liquidated, it could effectively crash solana. Is that about right and this whale doesnt look like theyre going to cash out, so they want to essentially forcibly seize his solana and make him cash out that sounds sub optimal sounds very centralized, authoritarian style of governance of sorts, maybe the antithesis of crypto. So, as a solana holder its hard not to have mixed feelings about this, because on the one hand, they recognized that what was happening could send the price of solana down to zero. On the other hand, they just became authoritative and basically reinvented the traditional financial system that we have today. Congratulations gentle people of soulland, youve, reinvented tradfy, but with more steps and more frequent and unpredictable interruptions. So at this point in time, because the gentle people of soulland and solana stepped in to basically seize the whales wallets and move the coins manually themselves at this point in time, it doesnt seem, like solana, is heading to zero, but information on this is coming in By the hour, make sure you subscribe were going to continue to keep you updated on this story.

This again highlights a problem in the cryptocurrency space, how certain protocols sell themselves as decentralized, but when the rubber meets the road they step in and are revealed to be decentralized in name only now, if youre in the crypto market, if you follow the channel, i dont Think any of us ever thought that solana was very decentralized, that wasnt part of my investors thesis when i bought it and the fact is, you know many protocols can see a lot of success with you know varying degrees of centralization, and decentralization i mean the goal. Is to get decentralized because if the protocol isnt permissionless whats the point but maybe selling themselves describing themselves as decentralized right on their website, isnt the best and most honest and straightforward definition of what it is so my opinion. I think the solana team essentially did the right thing in the moment not having the project go to zero is optimal. Now they revealed how centralized they are and how authoritative, but again did we think they were that decentralized. In the first place, we didnt its okay for right now, barely, but this or things like this cannot keep happening. If salon is to have a long term future, we are in a bear market, so the price can always stay low or go a little bit lower, depending on what bitcoin and ethereum do. But i think solana, as a protocol, is going to sustain and possibly can still thrive in the future i mean theyre integrated with coinbase theyre integrated with openc for alternative layer, ones, theyre honestly, one of the best in the space, especially with partnerships and integrations and developing Ecosystems, hey solana, is up today as well so crazy times.

Youll have to give me your opinion in the comments below i look forward. Let me know the answer to this number. One. Do you hold solana, do you think youd take out a position in solana if it got low enough? Are you still bullish eventually on the future of solana, and do you think that the devs did the right move by stepping in? Let me know your thoughts in the comments below we keep you updated on a daily basis, everything going on in cryptocurrency. We keep you informed thats. Why you subscribe. Solano was the biggest news of the day.