Crypto Billionaire Sam Bankman-Fried Calls Solana’s 5pm Blackout Sad and Frustrating – and Says a Stablecoin Ban Would Harm the Industry | Currency News | Financial and business news

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

FTX

Sam Bankman-Fried said the solana outage was sad and frustrating, speaking in an interview with Bloomberg. The hot token suffered a 5pm outage last week, which Solana attributed to “depletion of resources”. FTX CEO Bankman-Fried also weighed on stablecoins, saying an outright ban would hurt the industry. See more stories on the Insider business page.

Crypto billionaire Sam Bankman-Fried said the 5-hour network outage of the solana token was sad and frustrating in a Bloomberg interview – but also said it was the natural result of a network that was growing so quickly.

The founder and CEO of crypto exchange FTX, 29, also said a crackdown on stablecoins by U.S. regulators could hurt the crypto industry, which uses them extensively to trade tokens.

Solana, one of the most popular and rapidly growing tokens, stumbled last week after the blockchain network it runs on crashed for more than 17 hours. The network has not been able to cope with an increase in activity, a serious problem called “depletion of resources”.

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

Still, the crypto entrepreneur said, “What this really focuses on is that when you try to massively develop a blockchain, you eventually test its current limits.”

He added that he believes the issue is now resolved. Solana said she would publish a “detailed post-mortem” on the issues in the coming weeks.

Read more: Self-made 29-year-old billionaire who made 10% daily returns on $ 1 million crypto trades breaks down the 2 types of trading opportunities available in the $ 2,000 billion market today hui – and explains why he’s ‘a huge Solana fanboy’ in the midst of DeFi’s rise

Solana was down 12.5% ​​on Monday and was down about 19% for the week, according to CoinGecko. Other cardano, binance coin and XRP altcoins were also down sharply, along with bitcoin and ether.

Bankman-Fried also weighed in on the topic of stablecoins, after Bloomberg reported that the U.S. Treasury was considering launching a comprehensive token review. It could lead to a crackdown.

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

A stablecoin is a cryptocurrency linked to a fiat currency, most commonly the dollar, and backed by assets such as dollars and treasury bills.

Still, regulators fear that stablecoins’ links to other markets through their supporting assets could be problematic in times of volatility.

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