Trump’s Crypto Czar Sacks Is Super Bullish For Solana: Here’s Why
Solana (SOL) may be one of the biggest winners in the nomination of David O. Sacks to serve as White House chief of artificial intelligence and cryptocurrency. President-elect Donald J. Trump on Thursday named David Sachs “crypto czar.”
Trump said Sachs would work to develop a legal framework that would provide the cryptocurrency industry with the clarity it has been seeking to allow the industry to thrive in the United States. Sacks brings a compelling background to the position: He served as COO at PayPal during its formative years and served as an advisor to the 0x protocol.
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Sacks is known for his long-standing support of Bitcoin as a decentralized hedge against traditional finance and as a proponent of decentralized finance (DeFi) to increase transparency in the financial system. He has also invested in several companies through his venture capital firm Craft Ventures. Cryptocurrency project.
Why Sachs is so bullish on Solana
One of his most high-profile exposures was his early investment in the Solana blockchain through a cryptocurrency-focused investment firm Multicoin Capital. In 2023, Sacks confirmed that he maintained his Solana (SOL) position and maintained a “significant rise” despite the market turmoil related to FTX.
Craft Ventures’ early involvement in Solana through Multicoin Capital reportedly generated significant returns. According to Sacks’ own account on the podcast (SOL was $169 at the time), the investment’s valuation soared to around $1 billion.
“I mean, that fund is like a 100x fund, it’s just crazy. So we’re an indirect beneficiary of Solana’s massive growth. I think in terms of returns, Solana will ultimately deliver for us About $1 billion in returns, but the people at MultiCoin will determine the trading decisions on that,” Sacks revealed at a conference. podcast.
Sacks discussed Solana at length on the All-In Podcast Chamath PalihapitiyaFounder and CEO of Social Capital. Their conversation highlighted Solana’s ability to support fast, cost-effective transactions at scale, often comparing its architecture and throughput to Ethereum.
“There are a lot of people, I would say smart people in Silicon Valley, who are betting that Solana could eventually replace Ethereum as the platform of choice,” Sacks said.
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Notably, the spot Solana ETF is about to launch in the U.S. 5 applications submitted and the U.S. Securities and Exchange Commission. With Sacks’ appointment, the possibility of a spot SOL ETF may further increase following Gary Gensler’s resignation as SEC chairman on January 20.
Solana’s strong fundamentals and growing institutional recognition are reflected in its price action. At press time, Solana was trading just below its all-time high of $264.39 set two days ago, surpassing its all-time high of $259.90 set in October 2021.
If SOL breaks through this newly formed resistance, technical analysts are pointing to potential upside targets. These include the 1.272 Fibonacci extension level at approximately $328 and the 1.618 Fibonacci extension level at approximately $415.
At press time, SOL was trading at $234.
Featured image from YouTube, chart from TradingView.com
