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Trump’s Crypto Czar Sacks Is Super Bullish For Solana: Here’s Why

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Solana (SOL) could be one of the biggest winners from the nomination of David O. Sacks as White House Director of Artificial Intelligence and Cryptocurrency. President-elect Donald J. Trump has appointed David Sacks as “Crypto Czar” on Thursday.

Trump stated that Sacks will work to develop a legal framework to provide the crypto industry with the clarity it has been seeking, allowing the industry to flourish in the United States. Sacks brings a high-profile background to the role: he was Chief Operating Officer of PayPal during its formative years and serves as an advisor to the 0x protocol.

Known for his long standing support of Bitcoin as a decentralized hedge against traditional finance and a proponent of decentralized finance (DeFi) for increasing transparency in the financial system, Sacks has also invested in multiple cryptocurrency projects through his venture capital firm, Craft Ventures.

Why Sacks Is Super Bullish For Solana

Among his most notable exposures is his early investment in the Solana blockchain, achieved through the crypto-focused investment firm Multicoin Capital. In 2023, Sacks confirmed that he maintained his Solana (SOL) position despite the FTX-related market turbulence and remained “up big.”

Craft Ventures’ early involvement with Solana, via Multicoin Capital, reportedly generated substantial returns. According to Sacks’ own account on a podcast (when SOL stood at $169), this investment soared to a valuation around $1 billion.

“That fund, I mean, it’s like a 100x fund, it’s just like bonkers. And so as a result of that, we are indirect beneficiaries of this huge increase in Solana. It will end up being about, you know, a billion dollars of, I think, Solana for us in terms of returns, but the MultiCoin guys determine the trading decisions on that,” Sacks revealed during a podcast.

Sacks has discussed Solana in detail on the All-In Podcast with Chamath Palihapitiya, the founder and CEO of Social Capital. Their conversations have highlighted Solana’s capability to support rapid, cost-effective transactions at scale, often comparing its architecture and throughput favorably against that of Ethereum.
“There’s a lot of people, I’d say smart money in Silicon Valley, who are betting on a flippening where Solana could ultimately overtake Ethereum as the preferred platform,” Sacks remarked.

Notably, a spot Solana ETF is just around the corner in the US with 5 applications already filed with the US Securities and Exchange Commission. With the appointment of Sacks, the likelihood of a spot SOL ETF following the departure of Gary Gensler as SEC Chairman on January 20 is likely to have increased further.

Solana’s strong fundamentals and growing institutional recognition are being reflected in its price action. At press time, Solana is trading just below a new all-time high established two days ago at $264.39, having surpassed its previous record from October 2021 at $259.90.

Should SOL breach this newly formed resistance level, technical analysts point to potential upside targets. These include the 1.272 Fibonacci extension at around $328 and the 1.618 Fibonacci extension at approximately $415.

At press time, SOL traded at $234.

Solana SOL price
SOL price, 1-week chart | Source: SOLUSDT on TradingView.com

Featured image from YouTube, chart from TradingView.com



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Crypto Czar David Sacks Gives Take On Operation Chokepoint 2.0

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Conversations around Operation Chokepoint 2.0 has taken a new twist after incoming Crypto Czar David Sacks said the allegations around the subject deserves probe. The latest conversation on X started with Chris Lane, the former CTO of Silvergate Bank giving account of why the institution failed.

Operation Chokepoint 2.0 Is Universal

According to Lane, its exposure to FTX Derivatives Exchange did not kill Silvergate, that regulators did. He noted that American regulators went after 5 US banks simultaneously the Sunday after Thanksgiving celebration in 2022.

With the collapse of FTX, Lane said Silvergate survived a 70% run on deposits. By his analysis, a typical bank would not have survived a 20% run, underscoring the depth of its excess reserve.

However, he noted that “regulators came in sometime in Spring 2023 and severely limited the amount of US dollar deposits we could hold for digital asset clients.” Considering its entire business hinges on this model, he said the bank had to close down.

“We effectively shut down the business and focused efforts on returning capital to shareholders Silvergate was an American business that pioneered a new business model in banking Regulators pulled a bait and switch – we were walking along and suddenly shot in the back,” Lane said in his X update.

He noted that of all the banks that actually offered services to FTX, Silvergate was solvent but was not allowed to thrive. Commenting on this blunt Operation Chokepoint 2.0 ordeal, the incoming Crypto Czar said it appears as though a lot of people suffered hurt by the crackdowns.

Since he secured the nomination from Donald Trump as White House AI and Crypto Czar, this is the first definitive statement from Sacks on the issue.

Will Donald Trump Administration Change the Game?

It is worth noting that the first call to probe the crackdowns of Operation Chokepoint 2.0 came from pro-crypto lawyer John Deaton.

Since his election as President, Donald Trump has made crypto industry-approved appointments including Treasury Secretary Scott Bessent. The President-elect also named Paul Atkins as the next Chairman of the United States Securities and Exchange Commission (SEC).

These incoming government officials are pro-crypto and the industry expects they will approach the policies differently to favor emerging markets.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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