Could Solana be a Victim of a Pump and Dump Scheme?

The Solana (SOL) token has tripled its price in less than a month as the cryptocurrency market posted staggering losses. On Tuesday, a wave of selling pressure pummeled the prices of nearly every single coin.

SOL is heading to better heights as many DApps, stablecoins, and DeFi projects build platforms on the network. The token now has a market value of over $51 billion, according to CoinGecko.

Solana hit the news recently as among the fastest-growing cryptos this year as it surged by 8,616%. The token is now in the seventh position among the world’s top 10 most significant virtual coins. 

Nirmal Ranga, Vice President (Trading), said ZebPay Solana processes transactions faster even after the updated Ethereum. He noted that Solana is progressing due to its fast, secure, and censorship-resistant blockchain that provides an open infrastructure.

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Pump and Dump

Is it possible for SOL to be a victim of a pump and dump scheme? A pump and dump scheme occurs when influencers build up a lot of hype around a new project. Then, they lure in beginner, poor-informed investors to invest before buying into them.

In this case, Solana is a well-established project that’s been viable for a long time. Also, it’s among the fastest-growing ecosystems in crypto. It has almost 500 projects spanning DeFi, NFTs, Web3, and more.

Recently, many Twitter accounts speculate that while it looks like a ‘pump and dump,’ it’s not the usual one. That’s because the platform has several use cases, especially within the DApp ecosystem. 

Solana Could Rival Ethereum

Solana is the fastest blockchain in the world, handling more than 50,000 transactions per second. The blockchain could be Ethereum’s rival, the most-used network for decentralized finance and digital collectibles applications. In terms of cost, Solana’s website says that the average price per transaction is $0.00025 making it efficient, thus adding to its traction. 

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Solana’s strong performance in the past month might have come from the launch of multiple projects on the Solana blockchain. Hitesh Malviya of Itsblockchain.com said that Solano does away with the scalability issues that most existing blockchain platforms suffer. He added that the Solana ecosystem had made tremendous progress towards achieving interoperability. It is associated with the Ethereum ecosystem through the Wormhole bridge, which permits users to intra-trade.