In the beginning of April 2020, Solana was the much hyped new kid on the block in the crypto industry. Boasting speeds of up to 60K TPS, it had the promise of being one of, if not the fastest blockchains on the market. However, all the glitz and glamour was short lived as cracks began to show in the character of founding team and what might be the crypto scandal of 2020 began to unfold.
Throughout their launch, the Solana team was emphatic about telling everyone that its current circulating supply was 8,258,354 tokens. It was one of its key selling points that drew in potential buyers excited over the low supply and market cap.
Even when heavily questioned, Solana’s Nigerian-Outsourced moderators were unwavering about the circulating supply number. Often speaking to skeptics in a condescending fashion. When ever difficult questions and criticisms aroused, they were quick to answer with NPC-like canned responses and sharing the same Solana articles over & over again, suggesting the community members read even if the articles did not specifically answer their questions.
However it proved to be difficult to verify the official circulating supply amount on the Solana Blockchain. The native Blockchain explorer (explorer.solana.com) is a hot piece of garbage. At one point, transactions weren’t even time stamped making auditing and accountability nearly impossible. When question about the native explorers poor quality, Solana claimed that the team was too busy to build a fully function-able explorer. Solana CEO, Anatoly Yakovenko stated that the unpaid Solana Community was ultimately responsible for providing one.
Many Solana holders became skeptical as time went on. Solana failed to publish a Binance info page and update their CoinMarketCap profile with key information relating to circulating supply and market cap. Questions concerning the info pages were met with cheap responses. What made matters even worse, Cartesi ($CTSI), who launched on Binance about a week after Solana did, manage to get their info pages done without any problem. It began to seem like something was up.
And Indeed it was… Around the last week of April 2020, News broke around the community that a third party managed to find a unlocked Solana Wallet containing 13m tokens. About 5m more than the circulating supply of 8,258,354 tokens Solana has advertised before its launch on Binance April 10th, 2020.
Once Solana was exposed, the team went into full damage control mode. On April 28th 2020, Yakovenko finally issued a medium post admitting that the circulating supply was actually more than double than what they originally stated. Yakovenko went on to explain that there was a previously hidden 11,365,067 tokens, which was a loan to their contracted Market Maker. The official circulating supply count was a staggering ◎19,715,661, a number figure that they flat out avoided using until recently. They made sure to carefully word it by separating the two line items without giving the grand total.
Solana Executives immediately began to instruct the Nigerian-outsourced moderators to stop telling everyone that the supply was ◎8,258,354 tokens without mentioning the ◎11,365,067 tokens that were loaned out to the Market Maker.
As a solution to be outed for having ◎19,715,661 tokens in circulation, Yakovenko stated that Solana would remove the Market Makers ◎11,365,067 tokens from the market and aim to burn them in 30 days. Furthermore, Solana did not have any plans to introduce more tokens to the market and that any plans to do so will be disclosed publicly beforehand.
The news was lauded by many community members and undoubtedly influenced a new wave of $SOL Token purchases. The market jumped 30% upon the announcement of the coinburn.
Others however, remained skeptical and wondered if the Market Maker suppressing the price by controlling more than 50% of the circulating supply. Some even questioned if Solana team would somehow release new tokens into the market thus offsetting the amount burn, despite the announcement of no plans to release new tokens. Yet, on numerous occasions the Solana team assured the community that there were no plans to do so. They went on to say that the monthly release allocations were based on the amount staked. And since there were little to no coins staked, there would not be any coins released for the month of May.
Ladies and Gentlemen, the fix is in! On Saturday May, 23rd 2020, Solana announced on a Medium post that they only retrieved ◎3,365,067 $SOL tokens out of the ◎11,365,067 they loaned out to their Market Maker. In order to make up for the other 8m tokens they committed to burn, they released 8m tokens into circulation with out any previous announcement to the community, totally reneging on their April 28th, 2020 Medium Post. The original commitment was to remove ◎11,365,067 tokens FROM THE MARKET AND THAT THERE WAS NO PLANS TO INTRODUCE MORE TOKENS TO THE MARKET AND ANY PLANS WOULD BE PUBLICLY BEFORE HAND. Not only did they outright lie to everyone twice, they waited to a Saturday of a holiday weekend to dump the news. A strategy that PR Firms use to bury unflattering news while most people are not paying attention.
The new circulating supply total is now ◎16,350,594, not ◎8,258,354 that every $SOL holder was expecting for since late April. The Solana team ran a month long con on its community. The excuses you hear now is “It’s the best we could do.” or that “The Total Circulating Supply is in accordance to the Binance article”. They are bullshitting so badly, that their team can’t even stay on the same page when questioned about the circulating supply scam.
Now that the Solana team has screwed over every $SOL token holder. They simply just want to move on. Like the cowardice punks they are, the marketing team headed up by Austin “the weasel” Virts, didn’t even push the Faux Coinburn news through the Solana Announcements Telegram Channel, nor did they tweet about it from the Official Solana twitter. Its clear that they want to shine as little attention on this scam as possible. In fact if you ask them, they seem to believe that their the ones that are being inconvenienced by the con they pulled. They just want everyone to move on and focus on their “big partnership” with a failed ICO who’s currently being sued by the SEC they are using $SOL token investors money to pay for.
From the time of the original coinburn announcement on April 28,2020 to the Faux coinburn on May 23,2020, the price of Solana dropped as low as 40%. Effectively pulling the rug out of all buyers who expected a price increase due to the upcoming reduction of circulating supply.
We reached out to Yakovenko for a comment regarding this story in which he declined.
If you are a $SOL token holder, Do not let Solana fuck you over in silence. Share this post and let them know they screwed with the wrong people. Contact popular crypto news outlets to report on this story. Hell, file a whistleblower report with the SEC. Take action. Do not let them get away with this!
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Solana’s Snowball of Lies entraps $SOL holders after a month long coin burn deception was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.