- 2036
- Posts
- ⚠️ Should you be worried?
GM everyone. This is 2036. We scroll for gems all day so you don’t have to.
Here’s what we’re serving up today 🍲: Yesterday, the Solana blockchain went down for 5 hours. Does this change our view on Solana?
(+ some airdrop news)
Let’s dig in.
Solana is one of the most promising investments for 2024. It is:
super fast
very cheap to use
… which is a welcome innovation if you’ve ever used Ethereum (and paid a gazillion $ in gas fees).
But Solana isn’t some small, fringe blockchain. It is a $55 billion behemoth on track to be the established third wheel to BTC and ETH.
Solana, however, hasn’t always had it easy.
For years, it was plagued by:
Its strong ties to Sam-Bankman Fried
Regular outages
… both of which seemed to be resolving. The FTX blow-up is largely behind us, and for 346 days, Solana had no outages.
Until yesterday.
At around 5:30 am ET, the Solana blockchain stopped producing blocks.
It took ∼5 hours to get it back up and running.
Now - this is obviously bad news. If the chain is down, everyone suffers. And it tarnishes the reputation of the brand.
So, does this change our investment thesis around Solana’s potential in 2024?
Well - let’s look at the market’s reaction.
During the outage, Solana could still be traded on centralized exchanges, like Coinbase.
And immediately after the outage happened, SOL dropped by -4%.
But right after the network came back online, SOL recovered all its losses.
It even finished the day in the green.
Long story short: for now, there is no cause for concern.
But if the outages persist, this might change.
This is one of the reasons we’re not chain maximalists. You need to be flexible enough to:
skate where the puck is going
change your mind if facts change
never marry your bags
For now, however, nothing has changed. Arbitrum and Base also went down last year. Not ideal, but it happens. Solana’s come back from way worse before.
Solana still offers cheaper transactions and a better user experience than any chain of this size.
That’s why things like memecoins, games, and NFTs on the chain will likely do well.
I’ll dig more into new opportunities within those categories soon.
**
In other news, those of you who qualified for the Dymension airdrop (because you followed these steps) should now see the coins in your wallet.
Make sure to add the chain to your Metamask wallet (not yet supported by Rabby).
If you want, you can also stake your Dymension airdrop ($DYM) by going to Dymension’s staking tool here.
You can also send it to Binance and sell it for USDT.
🎯 Want to invest in early-stage crypto opportunities before everyone else?
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.