- Solana price is looking top-heavy as it hovers below the $38.2 hurdle.
- Solend, a lending/borrowing platform voted to take control of a whale’s account to prevent a cascade of liquidation.
- Rejection at $38.22 and the fallout from this fiasco could trigger SOL to crash to $25.
Solana price breached a month-long declining trend line in a bullish move, but the recent developments could flip the narrative bearish for SOL.
Solend takes a jab at decentralization
Solend, a Solana-based lending and borrowing platform recently voted to take control of a whale’s account that was close to being liquidated. The said account borrowed $108 million USDC with 5.7 million SOL tokens as collateral.
Roughly 20% of the whale's account would be liquidated if Solana price slides below $22.30. Often, liquidation involves selling tokens on exchanges, which would have a huge market impact.
However, Solend’s move is unprecedented in the DeFi ecosystem because it violates one of the main tenets of Web3 – decentralization. This caused many in the space to critize Solend’s decision.
Insanity, what a joke
— Cobie (@cobie) June 19, 2022
