Is SOL Going to Zero? Crypto Bitlord Claims Solana Is Under Investigation

Ruholamin Haqshanas

Last updated:

June 24, 2024 09:29 EDT | 3 min read

Crypto Bitlord, a well-known figure in the crypto world, has raised speculations around Solana, suggesting that the cryptocurrency may be under investigation.

“We are hearing rumors that SOL is under investigation and a huge case is about to become public,” he wrote in a recent post on X, adding that the rumor has been circulating for weeks and could soon become public.

I’ve already seen a lot of cope and denial in the comments

-It’s sad when everyday people get caught up in things they don’t understand and lose money from it

From now on we must look to god. Because he’s the only one that can get us out of this shit now

— Crypto Bitlord (@crypto_bitlord7) June 24, 2024

The news has stirred skepticism within the Solana community, with some rejecting the claims as baseless.

“You must’ve sold SOL and/or got liquidated … so want to get a chance to buy cheaper and gaslight people to get your leverage high,” one X user wrote.

Another user called it the “FUD of the decade.”

“I’ve already seen a lot of cope and denial in the comments,” Crypto Bitlord wrote in another post, acknowledging the coping and denial in the comments.

“It’s sad when everyday people get caught up in things they don’t understand and lose money from it.”

Crypto Bitlord has made a reputation for himself in the cryptocurrency space, having been an early contributor to the Ethereum ICO and supporting various projects such as ADA, Dot/KUSAMA, and meme coins like Shiba Inu, Floki, and Pepe Coin.

However, his reputation was tarnished by a rug pull controversy involving a project called MOLLY, which raised $5 million and quickly plummeted in value, leading to accusations of fraudulent behavior.

SEC Drops Investigation into Consensus

The recent speculation surrounding Solana being under investigation comes as Ethereum faced similar scrutiny in the past.

In March, Fortune reported that the SEC was investigating three unnamed related companies for potential securities violations.

Consensys then sued the SEC one month later, alleging regulatory overreach.

The suit claimed chairman Gary Gensler sought to grab power over the crypto space, using legal maneuvers that would force ETH into a security definition following its switch to proof of stake in September 2022.

It also revealed that Consensys had received a Wells notice from the SEC, indicating the agency’s intent to sue.

However, last week, the SEC formally dropped its investigation into the blockchain’s eco.

“Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0,” Consensys said on X.

“This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.”

ETHEREUM SURVIVES THE SEC.

Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.

This means that the SEC…

— Consensys (@Consensys) June 19, 2024

Solana Drops After Probe Rumors

In response to the rumors, the price of Solana experienced a decline of nearly 8%, dropping to as low as $124.

However, the coin has since trimmed some losses. It is currently trading at $127.54, down by less than 5% over the past day.

While it’s unclear whether the rumors directly caused the price drop, they likely influenced market sentiment along with other factors.

Additionally, $10.75 million in long Solana positions were liquidated as panicked investors sold their holdings to mitigate losses.

The rumors surrounding Solana come at a time when 3iQ has applied for a Solana Fund in Canada, aiming to launch the first Solana ETP in North America.

Meanwhile, crypto investor and trader Brian Kelly has suggested that Solana could potentially become the next cryptocurrency to have a spot ETF in the United States.

In a recent episode of CNBC’s ‘Fast Money’, Kelly, who is also the founder and CEO of the BKCM Digital Asset Fund, posed the question, “The trade now is, who’s next?”

He then suggested, “You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum, and Solana are probably the big three for this cycle.”

The Bottom Line

Crypto Bitlord has sparked speculation within the crypto space with claims that Solana may be under investigation, hinting at an impending public case.

These rumors have been met with skepticism within the Solana community, with many dismissing them as unfounded.

Furthermore, Crypto Bitlord’s credibility has been marred by a rug-pull controversy involving the MOLLY project, which further puts the legitimacy of his claims under question.

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