SOL has been most profitable for its concentrated group of large investors, not us small investors

in hive-175254 •  2 months ago 

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Price wise SOL coin has been a lucrative investment in a 1 year time frame

As crypto investors, some of you may be wanting to buy SOL, the native crypto currency of Solana Blockchain. This is very natural because I myself purchased SOL when it was 39$, luckily it was on a uptrend and I started taking profits at $80, 100$, 120$ and 190$ levels so I don’t have much Solana left, but the price of SOL has been only climbing up, with SOL price making a ATH at 258$.

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Sol has gone to 240$ price from 3$ it was last year. Trading view chart>>

However, I am glad that I sold off most of my SOL coins, because I have my reasons why I am uncomfortable as a small crypto investor investing in Sol.

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Sol's price rise statistics from coingecko

Solid reason for one to be bullish about SOL coin during a bull run trend like this

True, there are fundamental reasons why SOL coin is going upwards and doing great, it’s because it has some great DEFI and NFT platforms that are popular with small investors as Solana is a blockchain with really fast transaction processing times that too with cheap transaction fees.

This is completely understandable, as Ethereum has frustrated all of us small investors with the high transaction fees and slow Blockchain processing times.

Concentration of SOL is on the wallets of large investors who are super rich thanks to SOL

Still, investors must understand that as a crypto investor the SOL coins are mostly held by whale investors, so when they dump, the price of SOL coins would bleed.

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twitter tweet
Most of the circulating SOL is distributed to insiders and venture capitalists while very less proportion of SOL is distributed to the public.

Yes, there are BTC and ETH whales, but even compared to that, the concentration of wealth with SOL whales is a lot more because big venture capital investors got to buy bag loads of SOL early on as SOL coin distribution to community members happened after SOL was first purchased by these whales.

Also only a small amount of SOL is distributed to community and small retail investors, while the majority 48% of SOL is distributed to venture capital firms, and insiders of the Solana Blockchain who are the founders, co-founders and team members.

SOL price is solid now mostly because the whales are still hodling SOL!!

The gravity of what I am saying can be felt watching this video clip where Solana’s venture capital investors joke about their investments saying that SOL made these large investors very rich as they got it all cheap, so they can sell it, but most of them are still hodling.

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Tweet
Watch this video on Tweet where Solana's early large investors are joking about their Solana Hodlings that they can now dump easily as they already are super rich thanks to Solana!!

So imagine, they sell their SOL, they make profits while large bunches of innocent retail investors processed with the classic FOMO spirit buys it high and experiences the depressing dumping effect of the SOL price.

Also what about retail investors hodling their SOL coins, they too will experience the downfall effect of SOL price that’s come down because a small group of SOL whale investors dumped it!!

My sentiments are completely hurt watching this crypto joke discussion among these SOL whales, so I sold most of my SOL yesterday. I have kept a bit of SOL because I need it if I have to do DEFI activity in Solana. They think it’s funny, that they have got fat rich by being early holders of SOL, that they can dump it anytime and that the price of SOL is solid only because these whales are still hodling their SOL bags. Well, I don’t find it funny a tall because this can cause small holders like me harm.

Retail investors beware, manage your SOL Holdings wisely taking profits from time to time!!

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Image by Gino Crescoli from Pixabay

Still, many retail SOL investors can do well hodling SOL, if they brought SOL at the dips, instead of absolute highs, still taking profits is important, as the SOL price is to a large extent at the mercy of the whales!! Somehow, I don’t feel much buzz of the retail community in Solana Blockchain, it’s definitely dominated by these whales enjoying the SOL riches they are bound to further keep experiencing!!

What I mean is SOL investors should play their investment game smartly and not get caught as the SOL investment game can be rigged against them with large investors dominating the space. Investors should be tactful by selling SOL hodlings to book profits at appropriate times and not buy SOL at risky times, with the possibility of whales dumping the SOL they got at a cheap rate!!

**Popular investor @DegenSpartan explains this better in his tweet **-
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Tweet

He also comments that by default retail investors are not in a level playing field in the SOL investment game, as large investors already got bag loads of SOL at a cheaper rate before the retail investors as they were allocated SOL tokens much earlier than the retail investors .

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This may not be fair but we have to accept that this happens everywhere, correct?, which is why I agree with him that the SOL investment game is rigged against us retail investors, we have to play it well or we might just get rekt!!

Thank you for reading.

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Hi @mintymile
Interesting view on this project. Never came to my mind to look at it from this angle!