FTX CEO Sam Bankman-Fried on Solana (SOL) and the stablecoin ban

Mon 20 Sep 2021 ▪ 15h52 ▪ 3 min read — by Hugh Renolds

Sam Bankman-Fried, crypto billionaire and head of FTX cryptocurrency exchange, voiced his opinion on the 17-hour Solana (SOL) network outage and the US Treasury’s initiative to validate stablecoins. According to him, Solana’s 17-hour blackout is a “sad and frustrating” event. However, the billionaire also believes that it’s a completely natural result for a network growing at such a fast pace.

The plot so far

Solana (SOL) is one of the most ambitious coins of this year. Last week, the blockchain of this project stopped working due to the high load caused by the attack by spam transactions. Eventually, the project team together with the validators were forced to reboot and update the network. Solana has not mined new blocks in 17 hours. During this time, the price of this rapidly growing asset managed to sink considerably.

According to Business Insider, Bankman-Fried was a Solana supporter and, in an interview with Bloomberg published on Sunday, described the incident as follows:

“It’s always sad when this happens. It’s always frustrating.”

At the same time, the head of FTX expresseв hopes that after the restart, SOL will work on bugs and continue to develop its project:

“When you try to scale a blockchain, you are ultimately testing its current limits.”

Bankman-Fried’s views on the outcome of the situation

He also added that, in his opinion, the problem has been successfully resolved. Solana’s representatives said that in the upcoming weeks they would publish a detailed report containing comprehensive information on the problem.

According to CoinGecko, on Monday, the Solana price fell by 12.5% ​​and declined about 19% over the week. Other altcoins such as Cardano (ADA), Binance Coin (BNB), and Ripple (XRP) showed similar results, along with Bitcoin and Ethereum.

Bankman-Fried’s interview did not end there. The 29-year-old FTX chief took the chance to share his views on the initiative of the US Treasury to conduct a rigorous review of stablecoins.

He believes that the actions of the United States regulators could harm the entire crypto industry. Stable coins add value to the entire cryptocurrency ecosystem and make it easier to interact with.

The US Treasury initiative could be the start of a crackdown and a subsequent ban on stablecoins, potentially making the digital asset industry less efficient.

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Hugh Renolds avatar
Hugh Renolds

I believe in the bright future of crypto. I have been investing since 2017 and look to share my experience in, and thoughts on, crypto and the blockchain.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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