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Solana (SOL) could be one of the most successful in the nomination of David O. Sacks as the White House Director of Artificial Intelligence and Cryptocurrency. President-elect Donald J. Trump named David Sacks as the “Crypto Czar” on Thursday.
Trump said Sacks will work to develop a legal framework to provide the crypto industry with the transparency it has been seeking, allowing the industry to thrive in the United States. Sacks brings a rich background to the role: he was PayPal’s Chief Operating Officer during its formative years and serves as a consultant for the 0x protocol.
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Known for his long-time support of Bitcoin as a hedge against traditional finance and a proponent of decentralized finance (DeFi) for increasing transparency in the financial system, Sacks also invests in numerous cryptocurrency projects through his venture capital firm, Craft Ventures.
Why Sacks Are Super Bullish For Solana
Among his notable disclosures is his early investment in the Solana blockchain, acquired through crypto-focused investment firm Multicoin Capital. In 2023, Sacks confirmed that he maintained his Solana (SOL) position despite the FTX-related turmoil and remained “large.”
Craft Ventures’ early involvement with Solana, through Multicoin Capital, has reportedly been very profitable. According to Sacks’ account on the podcast (where SOL stands at $169), this investment has risen to an estimated $1 billion.
“That bag, I mean it’s like a 100x bag, it’s like bonuses. So as a result, we are the indirect beneficiaries of this huge expansion in Solana. It will end up being about, you know, a billion dollars, I think, Solana said in terms of returns, but the MultiCoin guys make trading decisions about that,” Sacks revealed during the podcast.
Sacks discussed Solana in detail on the All-In Podcast with Chamath Palihapitiya, founder and CEO of Social Capital. Their discussions highlighted Solana’s ability to support fast, cost-effective transactions at scale, often comparing its architecture and functionality to that of Ethereum.
“There are a lot of people, I would say the smart money in Silicon Valley, who are betting on Solana eventually surpassing Ethereum as the platform of choice,” Sacks noted.
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Notably, Solana ETF’s location is close to the corner in the US with 5 applications already filed with the US Securities and Exchange Commission. With Sacks’ appointment, the chances of holding the SOL ETF after Gary Gensler’s departure as SEC Chairman on January 20 is likely to increase even more.
Solana’s strong fundamentals and growing institutional recognition are reflected in its price action. At press time, Solana is trading just below the new high established two days ago at $264.39, having surpassed its previous record from October 2021 at $259.90.
In the event that SOL breaks the newly created resistance level, technical analysts point to that as a potential target. These include the 1.272 Fibonacci retracement at around $328 and the 1.618 Fibonacci retracement at around $415.
At press time, SOL traded at $234.
Featured image from YouTube, chart from TradingView.com
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