Why I have sold all my $SOL
Solana: A blockchain that’s not always available
As an investor, trader, Defi user, or developer, you should never develop an emotional attachment to your investments. NGMI if you do. In this article, we will look at why I sold my $SOL. So let’s start. Shall we
So why did I sell?
In Sep 2021, the @solana network went down for 17 hours following an IDO sniped by bots. I was shocked by the duration, knowing many protocols and user funds can lose their funds (and some lost their funds) when the whole blockchain turns offline.
The consequences could have been way worse if there was a BTC red candle that day. Protocols such as @solendprotocol, @port_finance, @ProjectLarix, @TulipProtocol and others would have been unable to trigger liquidations, resulting in losses for both users and protocols.
Without opening a debt position (borrowing), even users lending assets would have lost part of their funds. Not to mention the poor folks that wouldn’t be able to adjust their health factors & LTV to avoid liquidations.
On 10 December 21, the Solana network suffered another attack. On 4 January, blockchain went offline yet again for 4 hours. The growing number of downtimes and episodes of falling TPS (below 500) have been happening now and then.
The first communication was done by @solana in September after the network went down and mentioned that 400,000 TPS was reached, causing congestion and blockchain to go down. What? So there is a max limit to the number of transactions that can be processed? That’s a design flaw.
As the @TheCryptoviser would say, Solana went down more in 2021 than McDonald’s shake machines. Congestion happened (and will always) on several other L1s (mainnet, @avalancheavax, @FantomFDN, @0xPolygon etc.), but none has ever gone offline.
All the attacks are believed to have originated from fundamental flaws in the Solana POH (Proof of History) consensus mechanism. Investing in Solana in the first place, I was very knowledgeable that decentralization was sacrificed for speed. I was okay with that. But I never knew that this speed also came at the cost of decreasing security.
A blockchain’s purpose is to process transactions. If it can be attacked at any time and turned off, then the whole Solana blockchain does not fulfill its primary goal. No point in digging into additional flaws that have been raised.
I have seen @aeyakovenko and @rajgokal refuting accusations. We have also seen the number of GitHub submissions (devs & fixes) increase in the last month, which indicates that the sol team is hardworking. Nevertheless, I am not a tech guy.
I have been using a lot of dapps and protocols in Solana. I had such a great user experience with @Saber_HQ @sunnyagg @solendprotocol @port_finance @SunnyAggregator, @AuroryProject @mangomarkets @Francium_Defi, @SolanartNFT etc. I have been selling 25% of my $SOL at each attack, and now my bag is empty.
I do not want to bear the risk of holding a blockchain with such a huge red flag. However, as an investor, I will not hesitate to do the same with other L1s $FTM $AVAX $NEAR if such security concerns are raised.
Eventually, I hope sol devs develop a solid design to counter this, even if some pretend they can’t do so. IDC, I am not a tech guy. I don’t know if it’s feasible. I believe what I see. If you measure the risk/reward profile of holding a $SOL token right now, I hope you concluded that the profile looks bad (SOL has already exploded)
Token Distribution
Not to mention what would happen if VCs get worried about this. Reminder of SOL token distribution
Image Address — https://pbs.twimg.com/media/FIgHiahXEAEpbzQ.png
Hey reader, all I care about is your portfolio well being. I am not expecting you to hate on solana or to attack me because you love solana. I was an ex-quantitative trader, all I communicated was the risk profile of investments.
None of this is financial advice. We All Gonna Make It.
Acknowledgment
Content converted from the thread by Atlas on Twitter. Follow him for more quality content, including alpha, research and trend.
