The Solana blockchain has come underneath hearth, with critics calling it a breeding floor for speculative belongings.
Nevertheless, Helius Labs CEO Mert Mumtaz argues that the chain is being unfairly blamed for tendencies that exist throughout all networks.
The Meme Coin Scourge
Solana’s latest surge in exercise has been largely fueled by meme cash, together with U.S. President Donald Trump and his spouse Melania’s choices, Official Trump (TRUMP) and Melania Meme (MELANIA).
Nevertheless, following unhealthy experiences with a few of these tokens, the place retail merchants had been liquidated following pumps and dumps triggered by insider buying and selling, some critics have labeled Solana “the worst factor to occur” to the digital asset house.
Simply days in the past, crypto dealer Hayden Davis launched LIBRA, a coin whose obvious promotion by President Javier Milei of Argentina fired up its afterburners, pushing its market cap past $4 billion.
Nevertheless, Milei later pulled down his endorsement, inflicting the meme coin’s worth to plunge by 90%, shedding buyers a lot of cash. On-chain knowledge revealed that insiders reaped large earnings, with Davis admitting in an interview that he was sitting on greater than $100 million from the LIBRA launch.
The scenario was made worse when some observers accused platforms like Jupiter and Meteora, that are constructed on Solana, of complicity within the LIBRA scheme. The allegations prompted Meteora co-founder Ben Chow to step down, with an unbiased third-party agency contracted to analyze the claims.
Mert Mumtaz Responds to Critics
Such incidents have turned public sentiment towards Solana, prompting Mumtaz to weigh in on the controversy, accusing detractors of tarring the chain’s total ecosystem over the actions of some unhealthy actors.
“You framed 1000’s of trustworthy builders for the actions of some scumbags, wrote Mumtaz on X. “The criminals can be punished, and the builders will hold constructing,” he added.
In one other publish, he highlighted the challenges of managing a decentralized community like Solana, the place there are much more grifters than builders:
“In each trade, worth creators are outnumbered by worth extractors.”
The software program developer additionally dismissed claims that Solana is solely a “meme coin on line casino,” highlighting varied purposes, together with decentralized GPU rendering, confidential funds, tokenized actual property, in addition to on-chain governance as a number of the key improvements on the blockchain.
“Interesingly, this doesn’t curiosity the loudest folks on twitter as a lot as cash,” he mentioned, “however they do exist.”
The criticism is just not distinctive to Solana. Throughout the ICO growth of 2017, Ethereum confronted an identical backlash after it emerged that at the least 80% of ICOs in that interval had been scams, with the largest, BitConnect, milking $2.6 billion from buyers.
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