Grayscale Solana Trust Dips by 75% After Open Trades on OTC Markets
We have the news of Grayscale Solana Trust (SOL) plunging down by more than 75%. This news followed after open trades initiated on the Over-the-Counter (OTC) markets.
The shares in circulation formerly valued at $51.9 million got trimmed to $14.8 million in the latest report released Monday. The dynamics of the market and the demand on SOL were quickly reversed as some large traders started buying up millions of dollars’ worth of SOL.
Earlier this year, Grayscale Investments started trading SOL as a publicly traded security in January 2021, months after launching it. It gave small investors an opportunity to add SOL to their portfolios with moderate amounts of capital. This however, didn’t lead to long-term sustainability for the asset.
Kain Warwick, CEO of Synthetix added that this speculative nature of SOL was bound to happen and that it does not reflect on Solana's fundamentals or its long-term prospects but rather just a short-term outlook.
"It’s no suprise that there was an increase in demand as these early movers and whales want to get into positions before they become inaccessible due to high prices," said Warwick.
"It doesn't really say anything about how solid or positive Solana's fundamentals are - it just means the whales are trying to make a move."