Several members of the cryptocurrency community have criticized three co-hosts of the All-in Podcast for insinuating intentions to dump billions worth of their Solana holdings simply because they could.
Social Capital’s CEO Chamath Palihapitiya, venture capitalists Jason Calcanis and David Sacks revealed on the podcast that they have all invested billions in Solana. However, a light-hearted exchange about liquidating their Solana holdings soon was characterized as the very capitalistic behavior that the blockchain community is fighting against.
A Twitter user by the pseudonym @GooseOfCrypto said the three were just bragging, with little concern as to how the FUD might affect the price of Solana.
“Oh, you know just a bunch of billionaire capital allocators joking about pump dumping #Solana. Nah”
According to crypto influencer Peter McCormack, such billionaires are more concerned with exploiting the concept of Web 3.0 to get richer rather than focusing on the benefits of this technology to humanity.
“These people want to define the Web 3.0 narrative. Hahaha, I have big bags, hahaha I get big discount, hahaha I am going to dump them, hahaha.”
High Whales concentration results in market manipulation
Crypto data research firm Messari published a token ownership distribution report across seven of the most popular public blockchains besides Ethereum and Bitcoin. As of October 30, 2021, Messari found out that 48% of the total tokens on Solana were owned by the team and entities such as companies and venture capitalists.
A further 13% was set aside for foundations, ecosystem grant pools, and participation rewards, and almost 50% to incentive community ecosystem funds. Only a tiny strip on the charted data represented token allocation to public participation.
Solana’s token distribution occurred in five different funding series with only one public sale. According to Solana’s blockchain explorer Solana Beach, SOL has a circulating supply of 301 million coins and a non-circulating supply of 207 million SOL.
Additionally, addresses that have holdings starting from 1,000 SOL and above account for only1.4% of the total address on the network, indicating a very high whale concentration at the top. The data also revealed that the majority of alternative blockchain ecosystems are less focused on public participation. In fact, foundations and community-driven initiatives that promote the development of these ecosystems are more prioritized.
Messari pointed out unfair launch procedures for public blockchains ultimately result in centralized control and manipulation from whales.
“Let’s be honest here, concentrated insider ownership may permanently impair blockchain’s ability to become credibly neutral public infrastructure.”