Why Solana, Bitcoin SV, and Sandbox are Falling Today

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what happened

In a somewhat mixed day for the crypto market, several cryptocurrencies fell for various reasons, which is not always the case in the crypto industry, where prices Bitcoin (BTC 0.32%) Usually runs many actions.

This price has increased since Tuesday afternoon Solana (Sol -4.54%) Down about 4.3% as of 1:40 pm on Wednesday. Meanwhile, its price Bitcoin SV (BSV -9.88%) Roughly 9% lower transaction, while the price Sandbox (Sand -5.03%) was about 4.5% lower.

so what

Popular online brokerages Robin Hood (The veil 0.29%) announced on Wednesday that it will end its support for Bitcoin SV before January 25 at 7 p.m.

Person looking at tablet with downward stock chart.

Image source: Getty Images.

A hard fork was later created from Bitcoin SV Bitcoin Cash (Bch -0.43%), which itself did a hard fork from the original Bitcoin. The hard fork for Bitcoin SV was intended to attempt to replicate the original Bitcoin protocol. Robinhood did not specify why it would no longer support the token, saying only: “We regularly review the crypto we offer at Robinhood. Based on our latest review, we have decided to stop supporting Bitcoin SV.”

Robinhood engages in a thorough verification process of the cryptocurrencies offered on the platform, mainly with the aim of ensuring that they are not listed as unregistered securities. While I don’t know if this is the reason for the removal of the Bitcoin SV token, this move makes me think that the company has some regulatory concerns.

While I can’t say for sure what caused the sell-off in SAND tokens, it seems to be connected to investors anticipating the release of 348 million SAND tokens next month, which is currently worth around $174 million.

Sandbox is an ERC-20 token that runs on Ethereum (ETH -0.23%) Used to facilitate transactions on blockchains and sandboxes, a blockchain-based metaverse. When investors know that a new supply of a token is about to flood the open market, it is not uncommon for assets to sell off in anticipation.

Solana appears to be selling off as investors take profits after a strong run last weekend and early this week. Solana took off the meme token bonk (Bunk 0.11%)Which is built on the Solana blockchain, which has become hot recently.

The initial drop of BONK, which is trying to emulate its successes Shiva Inu (SHIB -4.29%), was created for members of the Solana community. BONK has already seen some big price gains, so Solana’s volatility could be related to its connection to the meme token.

what now

It’s always interesting to have a day when cryptocurrencies become isolated from the broader market and trade in a certain way due to events specifically affecting their tokens or the blockchain network.

Of the three, I really like Solana as a long-term investment because of its blockchain’s ability to process thousands of transactions per second, although I’d rather not trade it in the fashion associated with a new meme token.

Investors in this space should keep an eye on new inflation data released Thursday morning. This official report has the potential to move the crypto market in a big way.

Bram Berkowitz has positions in Bitcoin and Ethereum. The Motley Fool has and recommends positions on Bitcoin, Ethereum, and Solana. Motley Fool has a revealing policy.


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