- Ethereum co-founder Gavin Wood encourages crypto investors wither (SOL), Binance Coin (BNB), XRP and cardanoHe warned of a collapse in ADA (ADA).
- Solana recently experienced some operational issues on its platform and the blockchain started working thirty minutes behind schedule as it was unable to process transactions for several hours. The latency in transaction processing negatively impacted staking rewards.
- As mentioned above, the slowdown in the Solana blockchain causes a bearish sentiment among investors. The Ethereum co-founder said that following this trend in Solana, he has a negative view of the altcoin and predicts a market crash.
Gavin Wood issued a stern warning to investors
Ethereum co-founder, altcoin’s investors; Solana has issued a warning against the drop in price. Commenting on the market as well, Wood said that he believes the crypto market may witness further declines after losing $1 trillion in the last bloodbath. According to the expert, cryptocurrencies such as Solana, BNB, XRP and Cardano may also fall in response to this price drop.
Wood told Reuters at the World Economic Forum in Davos:
“I hope people pay more attention to what the currency name stands for/contradicts when they are involved in a community, ecosystem, economy. Technology cannot prevent people from making mistakes, but it can help those who want to better understand the realities of the world and what they are buying.”
The massive collapse in LUNA and UST has aroused suspicion among crypto investors and raised concerns among holders. Gavin Wood believes that the price of Solana could change drastically in response to the volatility that will follow in the crypto market following these concerns.
SOL slows down following operational issues
On May 28, at 3 UTC (6 a.m. ET), Solana’s team announced that the blockchain was running 30 minutes behind its clock. Slow block times have a detrimental effect on staking rewards.
The status update released by the platform was as follows:
On-chain timekeeping is running about 30 minutes behind the clock due to the longer block time than usual. Although this has no impact on performance or network operations, the time reported by block explorers and dapps does not exactly reflect wall clock time.
The Solana blockchain was designed with a block time of 400 milliseconds, but the 1-minute average is currently moving at 659 milliseconds. While there should be 182 epochs/periods per year (rewards are awarded per epoch), staking rewards are also affected as latency and slow block time on the blockchain cause a time difference.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.