$SOL: A sleeping giant? Gem 101: Edition 1

in LeoFinance •  last month 

Solana, currently supporting 50–65k transactions per second and 400ms block times, without complex solutions like sharding or layer-two, can drastically be able to outperform any other existing layer 1,. And yet it will not burn a hole in your pocket because of astronomical fees!

Amidst all the DeFi hype, we are able to witness the scalability problems on ETH, especially the unsustainable gas fees; and ETH 2.0 upgrade seems to be ages away, still now.

After the massive success of $SRM tokens, backed by Alameda research and FTX team, which went up by more than 1500% since launch, I took a deep dive into seeing what Serum is really solving, and the Platform they chose to build their product on, Solana (SOL).

Serum project really showed us the possibility, what is probably possible on Solana blockchain, and the use case is great.

image source: Solana.com

This is the first post about undervalued altcoins, and I'm taking an initiative to post about those altcoins under the "Gem 101" tagline which I personally feel are undervalued and have a lot of potential. Since there are a hell lot of coins in the market, and you know about some altcoins that may have a lot of potential feel free to let me know on Twitter, or on discord, and I'll check that out

Before diving into this article, here's a disclaimer:

I'm not a certified financial advisor, and even though I've been trading for quite a few years, I urge people reading this, and my other posts to #DYOR (Do your own research) before taking any decisions!
Of course I'm going to help you out if you have some queries/doubts, so feel free to let me know in the comments, or on Twitter :)
I have also not been contacted by Solana team to shill this project :P
And I do hold some (not significant) amount of Solana tokens.

A Brief intro about SRM (Serum), a Platform built on top of Solana:

Serum claims to be the world's first completely decentralized derivatives exchange with trustless cross-chain trading. They also claim to support the best technology from centralized exchanges for orderbooks, and have addressed two key shortcomings of a DEX: Speed, and Fees.

This is something which interested me, as none of the Dexes have manage to solve all the above issues simultaneously.
Well in case there are any, and I'm not aware, please let me know in the comments below

And the best thing? Probably that's why I'm posting about the underlying coin:
The Solana integration will be interoperable with ETH, so you can imagine the market is is trying to challenge!

They have got pretty big names behind them, so here is a tweet by Sam Bankman Fried, CEO of FTX and Alameda research about Serum:


The following things make Solana stand out of the crowd:

"Proof of History" which is nicely explained in the Medium article by them.

With Proof of History, you can create a historical record that proves that an event has occurred at a specific moment in time.

The Proof of History is a high frequency Verifiable Delay Function. A Verifiable Delay Function requires a specific number of sequential steps to evaluate, yet produces a unique output that can be efficiently and publicly verified.

This appears to be a rock solid innovation.

SeaLevel: Parallel processing of smart contracts

I'm not going into the details about how it works, and a more technical, well explained article is present on their Medium blog post, so feel free to check the embedded link.

On the development side, they seem to be pretty active as well, with the latest Github commit happening within 24 hours (at the time of writing).

Much of the code is written on Rust,
which is fast and memory-efficient, with no runtime or garbage collector,and can power performance-critical services, and easily integrate with other languages.
So the claim that the Solana blockchain is built with speed in mind is pretty much valid.


Let's have a look at the chart and the possible buy/accumulation zone, if you are planning to get into this token for long term:

Warning: This is an estimated buy zone, and may reach, may not reach, and may even drag you down in case things go terribly wrong (Recent Example: Yam token, which dumped 99% due to a bug in the code.)
That dump was worse than Bitconnect lmao)

##Chart: SOL/USD, 4H

Link: https://www.tradingview.com/x/0dTwf58H/

Points to note:

  1. Buy zones/accumulation zones have been marked on chart.
  2. A small RSI Divergence observed, so it will be better not to FOMO immediately.
  3. This project is almost 16x up from the Ico, which happened

Note: If you are willing to buy and you don't want to miss out, on gains even if the market goes down, you can buy Solana tokens on the spot exchange, and hold a small short as well, with a stoploss just above the market structure.

In case you want a discount on fees, you can check out this link and sign up on FTX

Why FTX? Because SOL token futures are currently only available on that exchange.
And if you like Serum, you can stake Serum tokens directly from FTX.

A Brief update on the Bitcoin Dominance:


Points to note:

  1. 4H support broken down (bullish for alts)
  2. Mid Marketcap Alts looking technically good
  3. Keep eyes on the weekly support zone (Marked in blue) Below that, and alts will fly again...

Closing notes:

I'll be holding this project for long term. and I'll probably try to accumulate more coins on the way up/down.
But hey, It's better not to get "married" to a project by breaking your bank account. I'll be keeping some part of my alt capital on this coin, and sell when euphoria around this is at the peak.


If you liked the article, consider sharing this with your friends and circles, and also spare an upvote for me, so that I get motivated to keep sharing market insights and analysis :)

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Feel free to get onboard!


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I have been quasi-involved in blockchain projects for years, and trying to learn more, but it has only been within the last few months where I've been really trying to learn more, and for the first time in my life I have actually been financially stable enough to consider trying my hand in some investments(or seemingly so). I've decided to try to start spending more of my time on LEO; more so to learn than anything else.

With my minimal knowledge, it took quite some time to read your article. As with pretty much everything hahaha. But! It sounds like SOL has real potential for a future to me. I've been fucking astonished by ETH fees for one, so that alone is a big attraction to me.

Aaaaaand of course, FTX cannot run here in the US. God damnit.

Posted Using LeoFinance

Thanks for stopping by! :)
There are a lot of altcoins which can be a better alternative to Ethereum, but the main thing which seems to be hindering those is adoption.
Ethereum development community is, no doubt the best in this space.
There is a probability of these coins (Solana in this case) which may try to compete with ETH if the ETH upgrades take forever, and upgrades do not take place and the projects on top of ETH actually start looking for other alternatives, so that they don't get bogged down because of ridiculous fees on the ETH network, which is hindering adoption as well.
Time will tell which coin will have a future! :)

And as with FTX, I'm not sure, but have you tried using any VPN?
You can use location spoofer, or even change location using dev tools, after connecting to VPN (depends on the browser you are using).

Posted Using LeoFinance

I like the #gem101 idea. Looking forward to reading the series.

Posted Using LeoFinance

Thanks! :)
I'll be coming up with more such articles in future !

Posted Using LeoFinance

I had a look at Serum. What I didn't like is that (from what I read and I may have misunderstood) 73% of tokens go to the team / project contributors / collaborators and only 27% to the economic incentives.

That didn't really seem to fit the whole "decentralisation" idea for me.

Posted Using LeoFinance

Right. Good point here..
That's one reason why I'm still a bit skeptical about Serum, but since Serum is using SOL, I personally believe Sol will be great, and also some other projects may start building on top of SOL, but again, nothing can be guaranteed, and no one knows the future.
But with big names backing Serum, I'm kind of sure that it will go somewhere, even though it does not fully solve the "Decentralisation" idea.

Now, unfortunately, I can also point out, that most of the altcoins out there, (including the majors) have a very high amount of supply which are under control of a very small number of people. :(

Posted Using LeoFinance

It is a good sign for SOL. It's one I'll be keeping an eye on!