Sam Bankman-Fried, founder and CEO of the FTX exchange, said in a Bloomberg interview that the Solana outage was sad and frustrating. The crypto millionaire also weighed in on stablecoins, saying a direct ban would hurt the industry. The altcoin project in question, Solana (SOL), suffered a 17-hour outage last week and was unable to deal with an issue called “resource exhaustion.” But Bankman-Fried thinks it’s normal…
Sam Bankman-Fried: The corollary of such a fast-growing crypto network
Crypto billionaire Sam Bankman-Fried said in a Bloomberg interview that Solana’s 17-hour network outage was upsetting and frustrating. But he also pointed out that it is the natural consequence of such a fast-growing network. Meanwhile, the 29-year-old founder and CEO of the exchange, Bankman-Fried, says the restriction imposed on stablecoins by US regulators could hurt the crypto industry, which widely uses them to trade tokens.
What happened in Solana Blockchain?
Solana (SOL)’s exponentially improved performance suffered a major crash last week after the blockchain it was working on was interrupted for more than 17 hours. The network has not been able to cope with an increase in activity, a problem called “resource exhaustion”. Bankman-Fried has been a big supporter of Solana and said in a Bloomberg interview published Sunday:
These things are always sad, always frustrating. What this really focuses on is that as you try to grow a Blockchain massively, you eventually test its current limits.
Additionally, Bankman-Fried added that he now thinks the issue has been resolved. Solana said on Blockchain that he will publish a “detailed autopsy” of the problems in the coming weeks. During this period, Solana fell 12.5% on Monday and is down another 19% for the week, according to data from CoinGecko. With other altcoins, Cardano, Binance Coin and XRP fell sharply, along with Bitcoin and Ethereum.
Bankman-Fried also focused on the stablecoin issue after Bloomberg reported that the US Treasury is focusing on scrutinizing the tokens closely. The crypto exchange boss said it would be sad to see a direct ban and that the industry would become less efficient if a crackdown were to occur. He said that stablecoins add a lot of value to the system and make it easy to interact with everything. A stablecoin is a cryptocurrency pegged to fiat currency (mostly dollars) and backed by assets such as the dollar and the Treasury. Still, regulators are concerned that stablecoins’ connections to other markets through their support providers may be problematic during volatile times.
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