SOLANA IS RISKY? WHALE DRIVEN ECONOMY

in LeoFinance3 years ago

SOLANA:

Solana is one of the most scalable Blockchains that theoretically supports 700K transactions per second and the average transactions per second are around 0.00025$. For the decentralized application developers, Solana Provides the best way for globalization of the Dapps.
solana.png
All of this is done into the mainnet of the Solana so they aren't using any shared chains or layer 2 protocols for stability. This may sound really good and you may not see any problems with the Blockchain and the network itself. Yes, It is. The Blockchain is super cool. I will not talk about the decentralization factors of the Solana here. Maybe incoming post, you will be to hear that. Be sure to follow me for that.
In this article, I will talk about the major concerns of the Solana and the Game of the Big players. The main problem is on the supply of the Network and into the tokenomics that no one is telling you right now.

SOLANA PRICE HISTORY:

Solana was trading at around 0.6 $ at the last year 2020 June. That is before the surge of the bull market but you can imagine the coin going more than 100X without the help of Elon Musk and would be wondering how is this even possible. I will let you know don't worry.
solana spikes.PNG

MAIN ISSUE WITH THE SOLANA:

I don't like to make you wait. So Let's talk about the Solana major issue which is control of most part of the token by the big whale.
WEALTH DISTRIBUTION OF SOLANA:
This indicates the number of tokens hold by the number of wallets and the wealthiest SOLANA wallets. You can view the data presented here by going into their website itself.

TOTAL SUPPLY: 504 MILLIONS

CIRCULATING SUPPLY: 296.69 MILLIONS

Solana Pie chart.PNG
You can see the big chunk of wallets (GREEN, BLUE, AND PINK COMBINED) are the top 100 wealthiest wallets of the Solana Blockchain. By this idea, you can guess that how much Solana is in their wallets.
THERE IS ONE WALLET OF THE SOLANA THAT HOLDS 2% OF THEIR ENTIRE SUPPLY which is worth 19BILLIONS+ in today's price rate.
This is the link to the wallet address on the Solana Beach website:
SOLANA TOP 1 WALLET
SOLANA TOP 1516 WALLETS:
solana_addrsses holding.PNG
You can clearly look into the picture above that, 51% of the total supply is held by 1380 WALLET ADDRESSES ONLY. This means the coins that are out into the market are really less in number and it is so much easy for the price to drive accordingly.
And the interesting thing is that, there was some movement of the tokens in between the top wallets during I was creating this post. You can look at the new data below:
coin movement.PNG
If you look into the last rows, you can see there are few changes to the wallet addresses and their holdings. In fact, 10 wallets get added to the list. IDK why.

WHAT DOES THAT MEAN?

This simply means that there are only a few tokens that are available in the exchanges and in the market to be traded. This refers to the theory of liquidity and you can apply simple demand and supply theory here to know the best idea of how things are happening.

TODAY NETWORK PROBLEM?

Today the Solana Blockchain faced a big problem today. There was a problem because of the flood of the transactions but it was supposed to carry 700K Transactions per second. According to their Twitter handle, The network was flooded with around 400K transactions from the bot causing the issue into the main Blockchain. The nodes had to restart their machine and contact for a while for the network to get started again as working.
There are only 1037 Validators into the Solana Blockchain. So, You also have to take note of that.
DISCLAIMER:
SOLANA IS A GREAT PROJECT. I HAVE SOLANA IN MY PORTOFOLIO. BUT THERE ARE THINGS THAT MAKE ME CONCERN ABOUT THE PROJECT AND I DO SHARE THEM WITH YOU TO MAKE SURE YOU ALSO HAVE AN IDEA OF WHAT'S GOING ON.
COMMENTS WILL BE APPRECIATED.
Thanks for reading
@ridam

Posted Using LeoFinance Beta

Sort:  

@anddumbcounts I see you are downvoting my articles? I don't mean it is illegal to downvote but you are doing it in a row. If you have anything to say about the content there is a comment box below where you can express your thoughts. Thanks for reading my articles.

Posted Using LeoFinance Beta

Good writing. I did have my eyes on Solona before. But I did not make any investment on it. Watching the price going up like crazy really makes me wonder what major project that they do to be able to attract investor to their portfolios?