The largest whale account will be controlled by the Solend Labs DApp, based on user votes.
Following the collapse of Terra Luna, the crash of Bitcoin and other cryptocurrencies, and general market upheaval, another high-profile network has generated quite a stir in the community, with one of their DApps announcing that they will temporarily control the account of their largest investor.
According to Watcher Guru, Solana’s lending platform Solend has voted to try to “mitigate liquidation risks” by allowing the account’s susceptible assets to be liquidated. Fears of on-chain liquidation grow due to the whale’s big account.
According to legend, the whale owns 5.7 million Sol and controls 95% of the primary pool reserves. This amounts to roughly $190 million at the time of writing. The Solend team reported that they attempted to contact the account owner several times but were unsuccessful.
The act has generated quite a stir in the community, as it contradicts the decentralized nature of crypto, which is the system’s core foundation. Some have branded the network “clownchain,” while others are considering withdrawing funds and filing a lawsuit.
Overall, it appears that everyone agrees that managing accounts is not the route out of a bad market but rather the reverse since this latest development may now turn investors off. The frantic attempt to keep the network from collapsing may become its undoing.