Yet Another Crypto Scandal - Whatever Happened to Solana’s Decentralization?

The Solend Labs DApp is set to control the biggest whale account, upon users’ vote..

Yet Another Crypto Scandal - Whatever Happened to Solana’s Decentralization?

In the wake of the Terra Luna collapse, Bitcoin and other cryptocurrencies tumbling down, and general market chaos, another high-profile network has caused quite an uproar across the community, as one of their DApps announced they would temporarily control the account of their biggest investor.

As confirmed by Watcher Guru, Solana’s lending platform Solend has decided by a vote that Solend Labs would try to “mitigate liquidation risks” by having the option to liquidate the account’s vulnerable assets. The whale’s large account is seen as a threat and fears arise of on-chain liquidation.

The whale is said to own 5.7 million Sol and holds 95% of the main pool deposits. At the time of writing, this accounts for nearly $190 million. The Solend team has stated they have repeatedly tried to get in contact with the account owner, but to no avail:

“Despite our efforts, we’ve been unable to get the whale to reduce their risk, or even get in contact with them. With the way things are trending with the whale’s unresponsiveness, it’s clear action must be taken to mitigate risk.”

The deed has caused quite an uproar in the community, as it goes directly against the decentralized nature of crypto that is the very touchstone of the whole system. Some have dubbed the platform “clownchain,” while others are discussing pulling money out of the project and calling for a lawsuit.

All in all, everyone seems to agree with the fact that controlling accounts is not the way out of a bear market, quite the opposite, as investors now might be put off by this recent development. The desperate move to save the network from spiraling down might as well be its own undoing.

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