The latest legal battle within the crypto sphere involves Solana Labs and SOL holder Mark Young. With the Ripple vs. SEC suit seeing no speedy conclusion, can another scrutiny hurt optimism within the cryptocurrency community?
At It Again!
Solana Labs faces legal scrutiny after Mark Young of California filed a suit against them. The plaintiff pressed the action on CEO Anatoly Yakovenko, Solana Labs, a VC firm, Kyle Samani (co-founder), and Solana Foundation, alongside the FalconX trading platform.
Moreover, the suit is on behalf of SOL investors that have interacted with the project since its March 24, 2020 launch. The lawsuit perceives Solana tokens as “unregistered securities.”
The document stated that the defendant made immense returns by selling $SOL securities to US retail investors, violating the state securities and Federal laws, and investors endured massive losses.
Young trusts the defendants misguided investors with the asset and accumulated illegal profits. The document included comments and tweets from the defendants, and the judges will assess the posts. Meanwhile, how has the native token SOL responded to the lawsuit events?
Still Rallying
SOL has repelled any pessimistic signals from the suit. The alternative token has maintained rallies within the previous week, recording a 20.5% surge.
While publishing this content, the alternative token traded at $38.5 following a 4.5% upsurge since July 8. Nevertheless, Solana volumes deteriorated, losing 7.2% over the past 24 hours. The impending legal actions are likely affecting traders’ sentiment.
Another thing might be the social dominance index decline. Santiment data shows this metric plunged to the lowest mark in July, currently hovering at 0.74%. Investors might rejoice since these metrics haven’t affected the prices. The broader market saw impressive movements within the past few days before somewhat calming.
While publishing this blog, the total crypto market capitalization stood at $945.01 billion, reflecting a 0.85% decline within the past day. Meanwhile, the global market volume fell 35.21% over the past day to $56.05 billion.
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