"PayPal Gang" member, pioneer in AI and cryptocurrency, and long-term bull on SOL—David Sacks has become the new "Cryptocurrency Tsar" of the United States! With Donald Trump's official appointment, this former PayPal executive has been thrust onto the core stage of U.S. cryptocurrency policy-making. Meanwhile, his long-term support and firm holdings in Solana (SOL) may ignite a new market frenzy for this smart contract platform.

From PayPal to cryptocurrency: Sacks' legendary journey

David Sacks, as an important member of the PayPal founding team, built the global electronic payment infrastructure alongside Elon Musk, Peter Thiel, and others. He is not only a veteran in the fintech field but also possesses unique insights in cutting-edge technology areas such as Web3 and artificial intelligence (AI).

After being appointed as the "White House AI and Cryptocurrency Tsar" on December 5, Sacks' background has drawn significant market attention. He is not only a long-term supporter of Solana but also an early investor in the cryptocurrency investment firm Multicoin Capital. These arrangements indicate his highly optimistic attitude towards the future of blockchain technology and digital assets, along with a clear drive for action.

Long-term supporter of SOL: Sacks' investment and belief

Sacks publicly disclosed in the 50th episode (All-In) podcast in 2021 that he made a large-scale purchase of Solana at a discounted price. He also emphasized that SOL is "the biggest turning point at the end of 2023" and did not sell his SOL assets after the FTX collapse, directly responding to market doubts about his selling.

His views have always been clear:

  • The technical capabilities of Solana: He believes that Solana, with its efficient consensus mechanism and low-cost, high-performance on-chain transaction capabilities, has the opportunity to surpass Ethereum as the preferred smart contract platform.

  • Rebound confidence post-FTX collapse: Despite Solana being pressured due to FTX's exposure, Sacks remains confident in its ecological potential. It has been proven that SOL achieved a 92% annual return in 2023.

He said: "Those who continue to hold Solana should feel very happy right now."

From policy to market: The potential impact of the Sacks era on Solana

As Sacks steps onto the policy stage, his role is not merely that of a "technology evangelist," but he may also bring substantial benefits to Solana's market and ecological development:

  1. Potential shift in the policy environment
    As the "Cryptocurrency Tsar," Sacks may influence the regulatory framework of the U.S. cryptocurrency market. By promoting more favorable regulations, he is expected to lower the barriers for developers and capital to enter the cryptocurrency market, further helping innovative chains like Solana gain a competitive advantage.

  2. Technical support and ecological resource integration
    Sacks' extensive business network (such as PayPal, Silicon Valley venture capital circles) may bring more resources for Solana's Web3 infrastructure development. Especially in the intersecting fields of AI and blockchain, Solana may benefit from this technological push.

  3. Capital attention and public opinion boost
    Sacks' public support has brought significant market attention to SOL. His appointment may attract more traditional capital influx, further solidifying Solana's position in the cryptocurrency market.

The competition between SOL and Ethereum: A new contest

In a 2021 podcast, Sacks bluntly stated: "Many smart people in Silicon Valley are betting on Solana; this chain may eventually replace Ethereum as the preferred platform."

Although Ethereum currently still holds the second position in market value, Solana's performance is indeed approaching:

  • As of the time of writing, Solana ranks fifth with a market value of $111 billion, second only to Bitcoin, Ethereum, USDT, and XRP.

  • Solana's speed and low cost have created substantial competition for Ethereum in the fields of NFT, DeFi, and on-chain gaming.

However, it is important to note that the rise of Solana does not signify the decline of Ethereum; rather, the two are more likely to develop in a differentiated manner. In the future, Ethereum may continue to dominate the Layer 2 expansion ecosystem, while Solana could occupy an important position in high-performance application scenarios.

Multicoin Capital: Sacks' secret weapon

In addition to directly investing in Solana, Sacks is also an early supporter of Multicoin Capital.

  • In 2018, he made a large-scale investment in Multicoin alongside Marc Andreessen and others.

  • Multicoin is one of the earliest institutional investors in Solana and has played a crucial role in the incubation of projects and technical development within the Solana ecosystem.

Sacks once stated: "Multicoin is not just a trader; they are also technical experts. They know how to evaluate emerging technologies, which is why I chose to work with them."

Looking ahead: Will Solana become the biggest winner?

David Sacks' appointment is undoubtedly a shot in the arm for Solana. However, whether it can continue to grow in the future will depend on several key points:

  1. Policy support strength: Can Sacks promote the introduction of cryptocurrency-friendly policies?

  2. Ecological competitiveness: Can Solana maintain its technological and user experience advantages in the growing Layer 1 and Layer 2 markets?

  3. Capital flow direction: Will institutional funds continue to increase their holdings in Solana-related assets, assisting its market value to climb further?

Operational advice: Is SOL worth positioning?

  1. Spot investment: For long-term bullish investors on Solana, the current price still has medium-term growth potential, and a phased building strategy can be adopted.

  2. Ecological observation: Pay attention to new applications of Solana in fields such as DeFi, NFT, and AI, especially high-growth Layer 1 projects.

  3. Beware of volatility risks: Market sentiment remains complex, especially under the Sacks effect, where profit-taking may occur in the short term. Operate cautiously to avoid chasing highs.

David Sacks' appointment not only marks a deep integration of the cryptocurrency market with the policy environment, but it could also serve as a catalyst for Solana to achieve leapfrog development. Follow Lao Lin for in-depth analysis of market trends and to master the next round of wealth codes!

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