More

    Crypto billionaire Sam Bankman-Fried calls solana’s 17-hour outage sad and frustrating – and says a stablecoin ban would hurt the industry | Currency News | Financial and Business News

    Sam Bankman-Fried co-founded the crypto exchange FTX in 2019.

    • Sam Bankman-Fried said the solana outage was sad and frustrating, speaking in a Bloomberg interview.
    • The hot token suffered a 17-hour outage last week, which solana put down to “resource exhaustion.”
    • FTX CEO Bankman-Fried also weighed in on stablecoins, saying an outright ban would hurt the industry.
    • See more stories on Insider’s business page.

    Crypto billionaire Sam Bankman-Fried has said the solana token’s 17-hour network outage was sad and frustrating in a Bloomberg interview – but also said it’s the natural result of a network growing so quickly.

    The 29-year-old founder and CEO of the FTX crypto exchange also said a clampdown on stablecoins by US regulators could be damaging to the crypto industry, which uses them widely to trade tokens.

    Solana’s sol- one of the hottest tokens, which has been rising rapidly – stumbled last week after the blockchain network upon which it runs suffered an outage for more than 17 hours. The network was not able to cope with a surge in activity, a problem solana called “resource exhaustion.”

    Bankman-Fried has been a big supporter of solana and said in a Bloomberg interview published Sunday: “It’s always sad when these happen, it’s always frustrating.”

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

    He added that he thinks the problem has now been solved. Solana has said it will publish a “detailed post-mortem” on the problems in the coming weeks.

    Read more: A 29-year-old self-made billionaire who achieved daily returns of 10% on million-dollar crypto trades breaks down the 2 types of trading opportunities available in the $2 trillion market today – and shares why he is ‘a huge fanboy of Solana’ amid the rise of DeFi

    Solana was down 12.5% on Monday and stood around 19% lower for the week, according to CoinGecko. Fellow “altcoins” cardano, binance coin and XRP were also sharply lower, along with bitcoin and ether.

    Bankman-Fried also weighed in on the topic of stablecoins, after Bloomberg reported that the US Treasury is weighing up launching a close examination of the tokens. It could lead to a clampdown.

    The crypto exchange boss said it would be sad to see an outright ban and that the industry would become less efficient should a crackdown occur. He said stablecoins “add a lot of value to the system and they make it easier to interact with everything.”

    A stablecoin is a cryptocurrency that is pegged to a fiat currency, most often the dollar, and backed with assets such as dollars and Treasuries.

    Yet regulators are concerned that stablecoins’ links to other markets via their backing assets could be problematic during times of volatility.

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Crypto is the ‘top contender’ for correction, money managers say, Invest News & Top Stories

    NEW YORK (BLOOMBERG) - By many counts, 2021 was the year cryptocurrencies were finally embraced by institutions. Now those same money managers say the...

    Crypto markets recover, but BTC could ruin the party

    Bitcoin price continues to...

    Vietnamese blockchain-based game hub Whydah bags $25m funding

    Vietnamese blockchain-based game hub Whydah has raised $25 million in a funding round, aimed at helping game studios apply blockchain technology, according to an...

    Newsletter

    Subscribe to stay updated.