- FTX CEO Sam Bankman-Fried sees Solana as the most undervalued token
- His comments came as the network battled a furious hack that resulted in the loss of $8 million in user funds.
in an interview wealth, Sam Bankman Fried, CEO of FTX Exchange, outlines his thoughts on the Solana cryptocurrency. He further added that he believes Solana is the most undervalued cryptocurrency out there, despite the cryptocurrency being involved in a multi-million dollar wallet hack recently.
On Aug. 3, Solana got into trouble after reporting a temporary breach in its wallet that drained nearly $8 million worth of user funds.
SBF bullish on Solana
Despite Solana’s recent troubles, FTX CEO Sam Bankman Fried made it clear that the currency will soon be able to clean up its mess. Solana has huge future potential, the FTX CEO added in an interview with Fortune. He took it a notch further, adding that he believes Solana is the most undervalued coin right now.
“Solana’s SOL is the most undervalued token right now…at least a month ago,” SBF told Fortune.
Solana’s recent wallet hack made multiple headlines when it was reported in the early hours of August 3rd. The hack resulted in the loss of nearly $8 million in user funds.
However, Bankman-Fried still maintains an impartial stance against Solana, adding that the hack was likely due to a bug in the app, not a breach of Solana’s protocol.
“It’s not a core blockchain issue, it might look like there’s a problem with an app someone built,” SBF told Fortune via email
As it turns out, SBF was right about the wallet being vulnerable, as the network later updated its users, and it was indeed a compromised app issue.
Beyond that, SBF believes Solana has huge growth potential, adding that the network has clearly solved a lot of problems and will continue to do so in the near future.
“I think it has a lot of bad PR on the short film – I think it deserves it, just to be clear: technically it needs to work out a lot,” SBF added. “However, I think it’s two-thirds of the way through. I think it’s going to pass the other third.”
Founded in 2020, Solana is a fast and reliable blockchain network based on Proof of Stake consensus. Over time, the network has expanded its use cases by penetrating the NFT and DeFi domains.
However, the network has experienced a fair amount of outages and downtime, which has affected its token pricing, as well as its overall reliability factor. Solana’s recent wallet hack also added fuel to the fire, affecting the entire SOL ecosystem. Despite these hurdles and hurdles, SBF remains optimistic about Solana, adding that these hurdles will ultimately help Solana improve its technology better than before.
“Anytime you test what’s the limit of what’s possible, that’s when you figure out what’s a breakthrough. If you try to do what Solana does, any blockchain will crash, it’s about finding out what needs to be improved and what needs to be improved a way of being a place,” the SBF later added.
It is important to note, however, that SBF has had multiple connections with Solana through various businesses in the past. Bankman-Fried invested in Solana through his trading firm, Alameda Research. SBF also has participate In Solana Labs’ $314 million financing, while building a decentralized exchange on Solana called serum.