The Macalinao Brothers pushed Saber onto the community by deceit and on social media by misrepresenting their identities and posing as dozens of independent developers, which helped to cause double value counting.
How It Functioned
The Macalinao brothers understood the importance of the active developer community in determining investment valuations and future expectations for protocols and blockchain ecosystems. So, the Macalinao brothers pushed Saber protocol as an active project.
In order to artificially boost the investment demand for the Saber protocol and the entire Solana ecosystem, they purposefully created the appearance of an active developer community working on it.
Additionally, the extensive web of interconnected DeFi protocols was built to give the appearance that the Saber protocol was receiving billions of dollars in funding. The overall value that was locked into the Solana ecosystem as a result also tended to grow quickly.
The wrong calculation of the monetary worth and the use of overlapping protocols led to the systematic exaggeration of financial assessments. Investors’ heightened interest in the Saber protocol and the Solana ecosystem as a whole led to the army of false developers’ relative success in the short run.
As a result, compared to typical market outcomes, the demand for them displayed greater dynamics. However, after being exposed, these schemes merely serve to fuel the panic selling of SOL and related cryptocurrency ventures.
Consequences for Solana
Investor confidence in the project has been undermined by the continuation of such schemes, which has proven to be extremely detrimental to the Solana ecosystem. They frequently drastically reevaluate their opinions on its commercial and technological prospects.
As a result, the quick correction could turn into a protracted recession, which would significantly jeopardize the ecosystem’s ability to survive. Currently, such deceptive corporate methods are largely condemned in public declarations. Such pricing manipulating practices have been categorically condemned by all significant Solana representatives.
But investors’ top worries center on making sure that such dangers can be properly avoided in the future. DeFi projects and DAO expedited program monitoring must be improved immediately. The TVL metrics have drawn increased criticism from all stakeholders.
Solana’s long-term standing will therefore be greatly influenced by its capacity to identify the best solution that can enable differentiating it from other blockchains and its main rivals. Although scalability benefits are significant, the primary concerns in this area come from existing weaknesses and purposeful value manipulations.
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