Solana has received more than one unfavorable headline in recent months. There were many network disruptions in addition to security vulnerabilities that resulted in at least one attack that cost more than $300 million.
Overall, this is a poisonous mix for a business like Solana Labs, which wants to establish itself in the DeFi industry and compete with Ethereum, the progenitor of smart contracts.
Blockchain may suddenly be in the sights of US officials. Mark Young, a California-based Solana investor, filed a complaint. He says that Solana Labs has previously made false claims while selling unregistered titles. This final argument should particularly pique the interest of the American Financial Market Supervisory Body (SEC), given the authority that has been prosecuting Ripple for the same infraction since 2020.
Young mentions not just the Solana Foundation and its CEO, Anatoly Yakovenko, but also the investment firm Multicoin Capital and its founder, Kyle Samani, in his complaint:
“Defendants made enormous profits by selling Solana (SOL) securities to private investors in the United States. This violates the registration provisions of federal and state securities laws, and the investors further suffer huge losses. “
In terms of deceptive comments, Young believes that there have been ambiguous remarks in the past, both concerning the offering and the decentralized structure of SOL. Some insiders most likely possessed tokens that they sold for more than $250 during the SOL rise.
Solana extended its comeback by taking advantage of the 23.6% fibo retracement around $33.81. It broke over the 38.2% Fibo retracement barrier at $38.67 yesterday, but no daily close above that level occurred.
Today, SOL/USD is resuming its decline, which might result in a retest of the 23% Fibonacci retracement. With a daily close below this level, more losses towards the psychological threshold of $30 and the cycle low of $25.96 are conceivable.
Only a daily closing above the 38.2% Fibo retracement would allow the rising trend to continue towards the 50% Fibo retracement of $42.60.