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Solana’s (SOL) price has dropped by around 30% in the last seven days after being named an unregistered security by the US Securities and Exchange Commission (SEC) in its lawsuits against Coinbase and Binance US. If the SEC does sue Solana Foundation, the price’s slump may not be over as it could cause more investors to panic sell. Solana Foundation believes the token is not a security. The idea of forking Solana to avoid SEC regulatory issues is being discussed, with a poll revealing 39.9% of participants were in favour, while 24.2% told the proposer to “stfu”.
This article originally appeared on www.newsbtc.com
The Solana community has been discussing the possibility of a fork due to regulatory pressure from the Securities and Exchange Commission (SEC) – causing the price of the cryptocurrency to dip significantly. The SEC has been scrutinizing numerous blockchain projects and their digital assets, and Solana’s SOL token is the latest on their radar.
The SEC has been investigating Solana Labs, the team behind Solana, and its SOL token to determine if it should be classified as a security. This classification would subject the token to various regulations and requirements, which could hinder its growth and adoption.
As news of the SEC’s investigation broke, the price of SOL saw a considerable drop. The token went from trading above $200 to falling below $150 within moments. This sudden and sharp drop in price has caused consternation among Solana’s community, with some calling for a fork in response to the SEC investigation.
A fork occurs when a blockchain network splits into two separate branches, with each branch running a new version of the protocol. In this case, a fork could involve creating a new blockchain that is free from the regulatory scrutiny of the SEC.
Those in the Solana community who are advocating for a fork are optimistic that it would allow the network to continue its growth and success without being stifled by regulatory pressure. By creating a new blockchain, the community could choose to implement different protocols and parameters that would make it less susceptible to regulatory action.
Others, however, are wary of the potential risks associated with a fork. Creating a new blockchain could be a complex and labor-intensive process, requiring significant amounts of time, resources, and technical support. Additionally, a fork could cause confusion and uncertainty among users and investors, potentially leading to a split in the community.
It remains to be seen how the Solana community will ultimately respond to the SEC’s investigation and the dip in price of the SOL token. Many are hopeful that a compromise can be reached that satisfies both the regulatory requirements of the SEC and the needs of the Solana network.
Until then, it’s likely that the price of SOL will continue to fluctuate as news and rumors about a possible fork and the SEC investigation continue to circulate. For those invested in Solana or interested in its future, keeping an eye on developments and remaining informed about regulatory changes and updates will be essential.
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