David Sacks Appointed as Crypto Czar, Boosting Solana’s Prospects
Solana (SOL) may benefit significantly from David O. Sacks’ appointment as White House Director of Artificial Intelligence and Cryptocurrency by President-elect Donald J. Trump. Sacks, also referred to as the “Crypto Czar,” will develop a legal framework for the crypto industry in the U.S., aiming to provide clarity for growth.
Sacks has a notable background, having served as Chief Operating Officer of PayPal and advising the 0x protocol. He supports Bitcoin as a decentralized alternative to traditional finance and advocates for decentralized finance (DeFi) to enhance transparency. His venture capital firm, Craft Ventures, has invested in various cryptocurrency projects.
Why Sacks Is Bullish on Solana
Sacks made early investments in the Solana blockchain through Multicoin Capital. In 2023, he confirmed maintaining his Solana position despite challenges from FTX-related market fluctuations, noting substantial gains. Craft Ventures' initial involvement with Solana reportedly yielded significant returns, with Sacks indicating this investment could reach around $1 billion.
During a podcast, Sacks explained that their fund had achieved remarkable performance, attributing substantial increases in Solana's value to the efforts of Multicoin Capital in managing trading decisions.
Sacks has extensively discussed Solana on the All-In Podcast with Chamath Palihapitiya, emphasizing its ability to facilitate rapid, cost-effective transactions at scale and comparing it favorably to Ethereum. He noted that many investors in Silicon Valley anticipate Solana potentially surpassing Ethereum as the leading platform.
A spot Solana ETF is anticipated in the U.S., with five applications submitted to the SEC. Sacks' appointment may further increase the likelihood of a spot SOL ETF following Gary Gensler's departure as SEC Chairman on January 20.
Solana’s robust fundamentals and rising institutional recognition are reflected in its current price, just below an all-time high of $264.39, set recently. It surpassed its previous record of $259.90 from October 2021.
If SOL breaks this resistance level, technical analysts suggest potential targets at approximately $328 and $415 based on Fibonacci extensions.
Currently, SOL trades at $234.
