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Solana pulls ad after huge backlash

But was it an epic fail or more a case of “all press is good press”?

Yaël Bizouati-Kennedy

Well, Solana was having a moment… for a moment. Talks about including the token in the crypto national stockpile, the slew of spot solana ETFs filings, and its recent fifth birthday had the coin buzzing again. Then it posted what many describe as (at best) a very cringe and “idiotic” ad: “America is Back — Time to Accelerate.” An enormous backlash ensued, so it deleted the ad, though it took them a while to pull the plug.

The ad features a man named “America” in a therapy session after being diagnosed with “rational thinking syndrome.” Critics argue the 2-minute, 38-second ad is pro-Trump (notably, President Trump’s eponymous meme coin, trump, was launched on the solana blockchain), “anti-woke,” and makes fun of gender identity. A lot. The therapist says things like, “Why don’t we take this energy and channel it into doing something more productive, like coming up with a new gender.”

“I want to invent technologies, not genders,” the America character says to the therapist. 

“Solana put out a politically divisive ad engaging in social identity issues around pronouns versus a focus on technology,” Two Prime Digital Assets CEO Alexander Blume said. “I think solana was aiming to be bold and align with tech-first values, but waded too deep into issues that distract from the offerings of their product.”

Others said that the ad was “brilliant marketing” as the “cringy rage bait” ad went viral. After all, as the saying goes, “all publicity is good publicity.”

“The solana ad felt out of the blue, given the nature of it punching down,” Alan Orwick, cofounder of Quai Network, said. “Solana is in the zeitgeist, so to kick other groups when it was uncalled for received clear backlash. Its important to remember crypto is apolitical, and the networks behind the assets should be credibly neutral.”

The ad was meant to promote solana’s Accelerate “series of events” in May in New York City. The events are organized along two distinct conferences: “Scale or Die” and “Ship or Die.” 

Solana is the sixth-largest crypto by market cap with $62.2 billion, but the price is down almost 40% since March 2024.

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Altcoin trading activity has lost its mojo

Non-bitcoin cryptocurrencies have seen their trading volume plummet in the past five months. The combined trading volume of ethereum, XRP, solana, dogecoin, SUI, and chainlink has decreased by 60% since crypto’s October 10 liquidation event, according to Thomas Probst, a research analyst at crypto markets data provider Kaiko.

Main Altcoins Trading Volume in USD
The trading volume of ETH, SOL, XRP, DOGE, SUI, and LINK.

For all altcoins, spot trading volume on Binance has declined between 80% and 85% to $7.7 billion, while altcoin volume on other exchanges has dropped to $18.8 billion, down from a range of $63 billion to $91 billion in October, a Friday report from Decrypt found, citing data from CryptoQuant.

“This trend may be explained by a contraction in market liquidity over the same period,” Probst told Sherwood News. “This phenomenon is also reflected in the average 1% market depth, which stood at approximately $2.6 million before the October 10 crash and is now closer to $1.7 million when aggregated across ETH, XRP, SOL, SUI, and LINK.” 

Market depth is used by investors and traders to gauge the scale of liquidity in a market. 1% market depth refers to the amount of liquidity needed to move the market by 1%. 

CoinGlass’s Altcoin Season Index, a measure to assess the performance of non-bitcoin cryptocurrencies, has been sitting above 50 this week, suggesting that the current market is neither in a bitcoin dominant phase nor an altcoin season.

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Payward, parent company of crypto exchange Kraken, puts plans for IPO on hold

Payward, crypto exchange Kraken’s parent company, has paused its plans for an initial public offering until market conditions improve, according to a report from CoinDesk that cited two people with knowledge of the matter. 

Since the firm announced in November its preparation for an IPO of its common stock, the total market capitalization of the crypto industry has shed around $652.2 billion, from $3.2 trillion to $2.5 trillion as of Wednesday, data from CoinGecko shows. 

The news comes two weeks after Kraken received approval for a master account from the Federal Reserve Bank of Kansas City, allowing the crypto exchange to connect to the Fed’s payment infrastructure used by traditional banks and credit unions. 

Last year, Kraken raised $800 million at a $20 billion valuation from institutional investors such as Jane Street and Citadel Securities.

The news comes two weeks after Kraken received approval for a master account from the Federal Reserve Bank of Kansas City, allowing the crypto exchange to connect to the Fed’s payment infrastructure used by traditional banks and credit unions. 

Last year, Kraken raised $800 million at a $20 billion valuation from institutional investors such as Jane Street and Citadel Securities.

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