Sam Bankman-Fried – CEO of the cryptocurrency exchange FTX – opined that the 17-hour network outage which Solana (SOL) experienced last week was due to its rapid growth. He also said stablecoins are an essential part of the ecosystem and urged the US regulators not to ban them.
Solana Was Down Because It Grows Too Quickly
In a recent interview for Bloomberg, the Founder and CEO of FTX – Sam Bankman-Fried – shared his stance on hot topics such as Solana’s disruption and regulations of the digital asset industry.
Being a supporter of the blockchain project, the 29-year-old crypto billionaire described the 17-hour collapse of Solana’s network as “sad and frustrating:”
“It’s always sad when these happen, it’s always frustrating.”
Bankman-Fried explained what caused SOL’s outage. According to him, its network has rapidly expanded in a short period of time. As such, it was not able to cope with the increased activity. However, FTX’s CEO opined that Solana has already solved its issues.
“What this is really focused on is as you try to massively scale up a blockchain, eventually you test its current limits.”
The executive also gave his two cents regarding stablecoins and their involvement in the cryptocurrency space. He believes they “add a lot of value to the system, and they make it easier to interact with everything.” Keeping that in mind, banning them would not be a good idea. Instead, US watchdogs should regulate them so they can continue playing a crucial role in the digital asset industry.
Solana’s Turbulent Last Few Months
The decentralized blockchain project Solana (SOL) has grabbed the attention of the crypto public lately. This has become even more accurate with the explosive growth of the NFT sector, a large portion of which uses Solana’s blockchain.
However, the impressive expansion led to some network issues, such as the aforementioned one. In the middle of September, Solana went down for hours as users were unable to process transactions. According to its CEO – Anatoly Yakovenko – the disruption was caused by “Raydium IDO bots trying to snipe the tokens at launch.” After more than 17 hours, Solana resumed operations after the validators restarted and upgraded to the current version.
Aside from this one-day network inconvenience, the project’s native currency has surged in value in the past few months. It skyrocketed by a factor of ten from mid-July to September 9th, when it registered its all-time high of over $210. Now, though, the market-wide correction has driven it down to $140.
Featured Image Courtesy of Yahoo