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The founder of the sunk Crypto company 3AC, fugitive Zhu Su, made critical statements about Solana (SOL)! He shared why it became a big bull.
The founder of the bankrupt cryptocurrency company Three Arrows Capital, Zhu Su, stated in his latest announcement that the PumpFun's PUMP token issuance event on (TGE) is an important factor accelerating the rise in the price of Solana (SOL).
Zhu Su is currently wanted by the US and is in a fugitive position. The collapse of Three Arrows Capital had brought about a significant wave of decline in the cryptocurrency market.
Su stated that both market dynamics and investor behavior are influential in this rise. According to Su, the fact that the Pump.fun platform does not hold a large amount of SOL does not create a downward pressure on the price, and this situation alleviates investors' concerns regarding the risk of selling.
Su also stated that there is a misconception in the market, mentioning that users are purchasing SOL with US dollars and trading on the platform, paying transaction fees with SOL, and that Pump.fun later converts these SOL into dollars. He expressed that this structure is a classic consumer business model and will not directly cause a decrease in the price of SOL.
PumpFun developers were frequently in the news for selling the large amounts of SOL revenue they generated on the market.
Zhu Su also mentioned that the financial activity created by PumpFun in the Solana ecosystem is noteworthy. Figures like the monthly revenue reaching 106 million dollars in November highlight Solana's strong performance, drawing the attention of both developers and investors to this network.
According to Su, this situation not only facilitates the increase of Solana-based projects but also brings the reevaluation of SOL as an investment tool to the forefront. According to Su's perspective, the fact that investors participating in PumpFun's initial coin offering process redirect their profits back into SOL emerges as another factor that boosts demand within the ecosystem and drives the price up.