In-depth analysis of why SOL has significantly dropped
This article analyzes the impact of tokens such as SOL, TRUMP, LIBRA, and MELANIA on the market, pointing out that these projects led to the collapse of the Solana ecosystem. In particular, the promotion and pump of tokens by Trump and his wife caused significant losses for investors.Original author: 0xDecision, on-chain analyst
Original source: 0xDecision X account
Original compilation: zhouzhou, BlockBeats
This article analyzes the impact of tokens such as SOL, TRUMP, LIBRA, and MELANIA on the market, pointing out that these projects have led to the collapse of the Solana ecosystem. In particular, the promotion and pump of tokens by Trump and his wife have caused significant losses for investors. Additionally, it is expected that a large number of SOL tokens will be unlocked on March 1, 2025, which may lead to a sharp decline in price. The article also mentions that the crypto market is facing numerous issues such as scams and hacking attacks, but the stablecoin index continues to rise.
The following is the original content (reorganized for better readability):
I spent over 10 hours analyzing what happened with SOL, how TRUMP, LIBRA, and MELANIA destroyed this chain, and currently, there is only one decision to reverse the market, which is a measure you can take to protect your funds before the crash.
Solana is a particularly fast blockchain suitable for applications and crypto projects.
It is built for speed and low cost, making transactions both fast and cheap.
Currently, SOL is in trouble due to several issues.
A month ago, the price of SOL was around 270, and it has now dropped by 30%, which may be the beginning of an impending major decline. I reviewed all the facts, and the results shocked me…
U.S. President Trump launched the TRUMP meme coin while SOL was hitting new highs. His actions harmed the entire market and caused chaos. After the launch, funds began to flow from other meme coins to TRUMP. In the first week after the TRUMP meme coin was released, hundreds of Trump's wallets sold over $2 billion worth of TRUMP. This led to a chart collapse, causing heavy losses for investors who rushed to exit, which was the trigger for the collapse of the Solana ecosystem.
After seeing how easy it was to withdraw, Trump's wife launched the MELANIA meme coin, which was even worse than TRUMP. Investors lost over 90% in the first 12 hours, while the team withdrew over $500 million.
On March 1, 2025, the largest SOL token unlock will occur. Approximately $2.2 billion worth of tokens will be released, which will lead to a sharp decline in price, and many long-position investors will sell to lock in profits, triggering a massive squeeze.
A week ago, @JMilei promoted a massive scam on Twitter. He also shared the contract address of this scam token multiple times on Instagram. The market cap of the token skyrocketed from $10 million to $4 billion in just one hour, but quickly crashed back down to $100 million within a few hours.
This cycle has seen an unprecedented number of scams, and they are now being conducted so openly. One in three broke celebrities is talking about cryptocurrency and launching tokens on SOL. Then, they pump the tokens by -99% within days, all right under everyone's noses, leading to a loss of confidence.
The largest hacking attack in cryptocurrency history led to a significant drop in ETH. Bybit was hacked, and $1.5 billion worth of ETH was stolen, which is a massive loss. Hacking attacks always harm the market and people's confidence.
On the other hand, the stablecoin index is still far below the levels of previous cycles, which shows how much new money is entering the crypto market. Currently, it has just begun to rise.
Overall, the situation is not as bad as it seems, but the fact is: we are currently in a phase of distrust. Such moments often present the best opportunities to learn new skills and improve oneself before the market warms up, so that you can become a winner by the end of this cycle.
