SOLANA IS NOT WHAT YOU THINK IT IS
How could the “world’s most performant blockchain” fail so often?
Coo! I hope your morning is nice!
Today’s National Assistance Dog Day, but this Thursday, I’ll be your Assistance Owl, bringing you the best crypto-related news (like every day)!
On Today’s Menu:
🥣FRUIT SALAD WITH GREEK YOGURT: Solana Is Talking Bullsh*t
🥪 SANDWICH WITH FETA CHEESE: Hashed Lost $3 Billion On Terra’s Meltdown
🥯 BAGEL WITH HAM: Aglaé Ventures To Launch €100 Million Web3 Fund
🫐 SOME BERRIES: More Crypto News Around The Web
SOLANA IS TALKING BULLSH*T
Yesterday Solana’s ecosystem was hacked. More precisely, it was an attack against hot wallets that are based on this blockchain (Slope, Phantom); the result is - more than 8 thousand drained wallets, around $8 million in crypto stolen, and an angry crypto community.
Sadly, it’s not the first time Solana has faced such problems. Yet, the fifth biggest blockchain ecosystem stays quite positive about itself:
Hmmm… really, though? You’re REALLY saying that your protocol is safe, Solana?
How about no? I think you’re lying without a shame to your customers’ faces.
Why?
In 2022 alone, Solana has already suffered from 5 outages (and we’re in the eighth month of the year, so probably this is not the end);
In total, this blockchain had 12 outages; DeFi Safety, an independent DeFi rating organization, ranked Solana as the second-worst blockchain in terms of safety.
So, whatever Solana says, protocol, however, IS compromised. Back at the start of this year, in January, Solana had service disruptions and duplicate transactions that led to an outage that lasted even for a week;
In spring (late May, early April), it also faced an overwhelming “attack” from NFT minting bots that also caused another outage…
The latest Solana outage (1st of June) happened because of the bug-related consensus failure. The bug caused nodes to create different outputs than usual, and it turned out to be a fiasco and, right after that – downtime. During this blackout, potentially around 975 million transactions hadn’t occurred. It must have been fun for the users. Solana’s price fell close to 14% down at that time.
Solana was created and represented to the crypto community as a rising crypto star and an “Ethereum killer” because of offering not only decentralization but also faster and way cheaper transactions compared to Ethereum ($,0000014 vs $0.09). That’s why it started to get popular and desired by various other platforms, companies that invested in this blockchain, and online wallets that decided to join this ecosystem.
However, it seems like Solana couldn’t offer safety for its users whatsoever. So who is winning here?
Somehow I believe it is not Solana… how could it be an “Ethereum killer” if it slowly kills itself?
HASHED ANNOUNCED ABOUT MORE THAN A $3 BILLION LOSS
If you haven’t heard about Hashed - it is a South Korean blockchain venture capital firm founded in 2017.
Hashed supported various projects, such as the well-recognized play-to-earn game Axie Infinity, or the Sandbox, another popular metaverse game.
Hashed also invested in Terra (LUNA) in 2019 and became one of the first Terra investors. Hashed purchased $30 million LUNA tokens back then, but of course, it never stopped supporting the project and, in 2021, participated in TerraForm Labs’ $25 million fundraiser.
Sadly, when Terra (LUNA) crashed, Hashed lost everything, which made a $3 billion loss.
Could this be one step closer to what happened to Celsius or 3AC? Because Luna’s crash messed up a lot of businesses and companies. As Hashed announced such a huge loss, I wondered if this loss was not critical for the venture capital firm.
Well, at least Hashed CEO Simon Seojoon Kim seems to be staying positive because he has plans on investing in the GameFi sector more - I’m talking about play-to-earn. Kim has a huge belief in this type of game as they might connect real and digital worlds via blockchain, not to mention NFTs and crypto in general.
AGLAÉ VENTURES TO LAUNCH €100 MILLION WEB3 FUND
A few days ago, I wrote about Tiffany & Co and CryptoPunks’ collaboration.
Let me remind you one thing: Bernard Arnault is the Chairman and CEO of LVMH
- the world leader in luxurious products; Tifanny & Co belongs to it.
And do you remember how I said that soon we’re going to witness some more big names after the latest collab?
Well, I was right. Bernard Arnault is now backing up Aglae Ventures - a company that works with players like Slack, Airbnb, Netflix, etc. So, thanks to Arnault, Aglae will launch a new €100 million worth of funds for investing in crypto startups.
I believe now will be when numbers of collaborations start to pop up - and I’m super excited about it.
MORE CRYPTO NEWS AROUND THE WEB
Coinbase, BlackRock ink crypto trading partnership targeting institutional clients
Ethereum's L2 solution 'Optimism' rallies 300% in a month — will OP price gains sustain?
Japan may see a reduced 20% tax on crypto earnings with new proposal
Senator Warren proposes reducing Wall Street’s involvement in crypto
COOKIE WITH CHOCOLATE CHIPS
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Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your research and act responsibly with your profits.