Crypto stakeholder reacts to Solana’s 17-Hour outage

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TL;DR Breakdown

  • Crypto stakeholder, Sam Bankman-Fried says Solana network outage is not new to crypto.
  • Bankman says the outage was because of Solana rapid growth.

Crypto stakeholder Sam Bankman-Fried, CEO of the cryptocurrency exchange FTX has reacted to the recent outage experienced by the Solana network.

The FTX CEO, who reacted during an interview with Bloomberg, said that the 17-hour network outage experienced by the network resulted from its rapid growth.

The crypto stakeholder addressed many issues affecting the industry during the interview. One key issue he also touched was stablecoins as he pleaded with US regulators not to ban them, noting that stablecoins are an essential part of the ecosystem.

Reason Solana outage persisted for 17 hours – Crypto stakeholder

Sam Bankman-Fried, during the interview, acknowledged that the outage is not a new thing in the crypto space but said that the 17-hour collapse of Solana’s network was “sad and frustrating.”

“It’s always sad when these happen; it’s always frustrating,” he said.

According to the crypto stakeholder, SOL’s outage was because its network has rapidly expanded in a short period of time. He said the network could not cope with the increased activity in that short period. He said, however, that now all that problem has been solved.

“What this is really focused on is as you try to massively scale up a blockchain, eventually you test its current limits,” he said.

The crypto stakeholder who also spoke on stablecoin and their involvement in the cryptocurrency space said they add a lot of value to the system and make it easier to interact with everything.

He said because of that, placing a ban on them would not be a good idea, but rather, US watchdogs should regulate them so they can continue playing a crucial role in the digital asset industry.

Solana’s growth, mild troubles over the month

Although the coin remains one of the top-performing in recent times, it has also faced certain setbacks.

Solana grabbed public attention owing to its sporadic price surge and the explosive growth in the NFT sector, a large portion of which uses Solana’s blockchain. However, the expansion led to some network issues, such as the one mentioned above.

Days back, Solana went down for hours as users were unable to process transactions.

The CEO, Anatoly Yakovenko, said that the disruption was caused by “Raydium IDO bots trying to snipe the tokens at launch.” After more than 17 hours, Solana resumed operations as validators restarted and upgraded to the current version.

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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