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Solana ranks low on the DeFiSafety technical risk score

Solana
TL;DR Breakdown
  • Solana network has had at least five complete or partial outages or service disruptions
  • The $100 million funds are intended to support gaming and DeFi startups

Solana’s study has been released by a firm that provides Process Quality Reviews (PQRs) for crypto and decentralized finance (DeFi) platforms, which was highly critical. “Due to repeated downtime, Solana has the second-worst final technical risk score among the 15 series ever reviewed,” it said.

Rather than auditing code or reviewing security, DeFiSafety focuses on the process behind the code and the quality of documentation. On-chain scores based on various criteria such as smart contracts and teams, documentation, testing, security, admin controls, and oracles are provided by the Canadian firm.

SOL has been labeled an “Ethereum killer” numerous times, but it has failed to deliver. Since January, the network has had at least five complete or partial outages or service disruptions in 2021.

 The previous widespread outage occurred on June 1, when a bug prevented block production due to a consensus failure. DeFiSafety noted: “Solana’s base score is low. Despite a public software repository and some good documentation, their infrastructure relating to nodes is subpar.”

Solana price declines rapidly

The once-popular cryptocurrency is now bleeding money, with its token wiping out all of the profits it has accumulated over the last year. In April, May, and June, SOL dropped by over 50%, owing to concerns about reliability.

SOL has dropped by more than 85% from its all-time high of $260 and is falling out of the top ten crypto market caps. According to CoinGecko, after a 3.4 percent drop on the day, SOL was trading at $38.43.

According to Defillama, the total value locked on SOL has dropped by more than 75% in the last six months.

A new $100 million fund for Korean web3 startups from Solana

Solana will invest $100 million into South Korean crypto businesses as it attempts to break into a developer market still recovering from the collapse of Terra earlier this year.

The SOL Network’s ecosystem will be bolstered by two crucial pillars: the Solana Ventures and Solana Foundation. “Across all three verticals,” it stated, “Solana Ventures and the Solana Foundation will contribute seed investments and grants.” However, their main focus will be on developing South Korean web3 startups. According to TechCrunch, Solana Labs’ head of games, Lee, said. The fund will focus on gaming firms in South Korea and NFTs and DeFi.

The weeks-old fundraising effort puts SOL in direct competition with Polygon, Avalanche, and other smart contract platforms aiming to attract the Korean crypto sector’s orphaned coding talent. After its May collapse wiped out billions of dollars in wealth, it’s uncertain how many Terra developers will return to the ecosystem.

According to Austin Federal, head of communications at SOL Labs, the fund is secured by capital from the Solana community treasury and the company’s pool of money.

“Many of the gaming industry is moving into web3,” Lee added. “We want to be adaptable; there are a variety of project sizes, team sizes, and so some of our investments will be venture-sized checks.” In general, gaming and NFTs dominate activity in South Korea, making the sectors a good fit for web3, according to Lee.

John Lincoln

John Lincoln

Lincoln contributes blockchain and crypto perspectives that meet the industry's selective information needs in a timely, undiluted fashion. His greatest wish is to share transformational technology through an engaging and easy-to-read style, making complex topics accessible to all.

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