In the crypto market, the question of where to invest often revolves around opportunities and risks. As such, investors now wonder whether Solana’s FTX fear was a ‘buy the fear’ event or if Bitcoin Spark is a better investment.
Why did Solana crash?
In 2022, Solana’s market cap fell from over $55 billion in January to barely above $3 billion in December, with the SOL price declining by over 90%. The major factor for this crash was Solana’s close association with FTX founder Sam Bankman-Fried. The disgraced former crypto billionaire was one of Solana’s most prominent backers, touting the advantages of the blockchain and investing heavily in SOL tokens. In fact, skeptics argued that the meteoric rise in the SOL token’s value in 2020-2021 was partly due to Bankman-Fried’s market interventions and advocacy. Therefore, when FTX collapsed, and Bankman-Fried was hit with eight criminal fraud charges, it triggered a massive sell-off of Solana (SOL).
Will Solana recover?
Several factors suggest Solana (SOL) could recover. The blockchain has attracted developers and projects due to its efficient and cost-effective transaction capabilities, ideal for building user-friendly decentralized applications (Dapps). The Dapp ecosystem on Solana has witnessed substantial growth, with decentralized exchanges, lending platforms, NFT marketplaces, blockchain gaming projects, and more showcasing its versatility and adoption potential. Furthermore, Solana’s commitment to innovation, demonstrated by developments like Solana mobile, underscores its determination to remain competitive in the dynamic crypto landscape.
Solana (SOL) is still about 90% down from its all-time high, which offers a low entry point for its believers. However, the effects of its association with FTX and Sam Bankman-Fried are still being felt today, as the legal suit is still in progress. The SOL token was also labeled a security in the recent SEC lawsuits against Binance and Coinbase. This has already had negative effects, with SOL getting delisted on several crypto trading platforms. Therefore, the outcome of these legal and regulatory issues will undoubtedly impact Solana’s path to recovery.
What is Bitcoin Spark?
Bitcoin Spark is a new crypto project inspired by the vision of Satoshi Nakamoto. It, therefore, shares some similarities with Bitcoin (BTC), such as having a fixed supply of 21 million BTCS. However, the network has significant improvements that set it on its own path to success.
Bitcoin Spark boasts fast transaction speeds and low fees owing to its enhanced individual block transaction capacity, short block time, and massive network nodes. Bitcoin Spark also provides a more robust platform for building smart contracts and Dapps. It has a multi-layered architecture with a seamlessly integrated smart contract layer that includes separate execution systems with singular network finality, allowing developers to use a variety of both high-level and low-level programming languages.
The Bitcoin Spark network also uses a proprietary consensus mechanism, the Proof-of-Process (PoP), which non-linearly rewards users for validating blocks and contributing their processing power. The network’s vast nodes and the PoP’s nonlinear rewards functionality enable Bitcoin Spark to have a large number of validators. In fact, Bitcoin Spark’s development team is set to launch an application that will allow Windows, iOS, Android, Mac OS, and Linux users to participate in network validation by simply permitting access to their device’s processing unit.
Notably, the power contributed by validators will be leased through Bitcoin Spark to organizations or individuals in need of remote computational resources. The network’s clients will be required to pay with BTCS, and the revenue generated will go to the validators.
Bitcoin Spark goes further to leave small unobtrusive spaces for advertising on its application and website. The Advertisers will pay with BTCS, combining Bitcoin Spark with the growing marketing industry industry.
BTCS is set to launch at $10 but is currently selling at $2.50, accompanied by a 9% bonus in Phase 5 of the Bitcoin Spark Initial Coin Offering (ICO).
Bitcoin Spark makes a more compelling investment choice considering its innovative technology, low supply, low market capitalization, and real-world applicability. However, it is essential to conduct your own research before investing.
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