- DonAlt claims Solana shifted from “beloved” to “hated” after users lost funds to scams, prioritizing growth over security.
- Solana’s leadership allegedly allowed scam culture, unlike Ethereum where Buterin openly condemns fraud, shaping differing reputations.
Pseudonymous crypto analyst DonAlt, followed by over 650,000 users, recently stated that Solana (SOL) transitioned rapidly from a favored blockchain to one facing criticism. He linked this shift to widespread financial losses from scams across the network.
“SOL went from beloved to hated quickly only because everyone on the chain lost all their money to scams,” he wrote.
DonAlt noted that early warnings about fraudulent activity on Solana were overlooked as the network prioritized growth metrics over security.
The big lesson from this cycle for L1s is that you wanna attract users like SOL did
But you somehow want to prevent them from getting scammed to not tarnish your reputation
SOL went from beloved to hated quickly only because everyone on the chain lost all their money to scams
— DonAlt (@CryptoDonAlt) February 16, 2025
DonAlt argued that Solana’s leadership indirectly allowed the chain to become associated with scams, contrasting it with Ethereum’s approach.
Ethereum co-founder Vitalik Buterin has publicly condemned fraudulent practices, while Solana’s teams, according to the ETHNews analyst, did not adopt similar measures. This distinction, he suggested, contributed to differing reputations between the two blockchains.
A focal point of scrutiny is Pump.fun, a platform on Solana that enabled users to create meme coins rapidly. The site gained attention in 2024 for producing thousands of tokens, many linked to rug pulls or pump-and-dump schemes. In December, the UK’s Financial Conduct Authority (FCA) blocked access to Pump.fun, citing violations of local financial regulations.
DonAlt further claimed that platforms like Pump.fun diverted capital from legitimate projects during the recent market uptrend.
“I’ll always maintain the idea that Pump.fun/SOL drained the early bull market alt season. And it went into the pockets of scammers and grifters” he posted.
His comments reflect concerns that speculative token launches on Solana may have shortened the growth phase for smaller cryptocurrencies, redirecting funds toward fraudulent actors.
ETHNews analyst’s critique raises questions about Solana’s long-term positioning. While the chain’s low fees and high speed attracted developers and users, recurring scams threaten its credibility.
Investors now weigh Solana’s technical advantages against its association with financial risks. Market observers note that resolving these issues could require stricter oversight or protocol changes to deter abuse.
