Solana News Today: Solana Whale's Return and MEXC's Fallout Highlight Crypto's Trust Struggles

A Solana whale known as "2z4gKC," which had been dormant for over 10 months, recently re-entered the market by spending $16,700 in 65 $mSOL to purchase 1.12 million $GHOST tokens, according to a CoinCryptoNewz report. The transaction, which marks the whale's return after staking 23,000 SOL (worth $4.37 million), is seen as a bullish signal for Solana's ecosystem. Analysts suggest the move could indicate growing investor confidence in the platform, particularly as Solana-based ETFs debut on Wall Street. The whale's activity aligns with broader optimism about Solana's potential, though short-term price fluctuations remain unpredictable.

Meanwhile, MEXC has faced scrutiny after freezing $3.15 million from a prominent trader known as "The White Whale" in July, according to a CryptoNewsLand report. The exchange initially cited "risk control" protocols, alleging the trader placed two orders within the same second, a practice MEXC claimed violated its terms of service. The incident sparked public backlash, with on-chain investigator ZachXBT amplifying the trader's claims of unfair treatment. After weeks of pressure, MEXC issued a public apology and unfroze the funds, as described in a crypto.news article. The White Whale, in turn, offered to serve as an unpaid advisor to help MEXC improve transparency and user trust.

The MEXC controversy has exacerbated growing concerns about the exchange's operational practices. Data from CryptoQuant shows a surge in Bitcoin withdrawals from MEXC following the incident, with daily withdrawals spiking from 40 to over 1,200 in mid-July, according to the CryptoNewsLand report. While the platform has since stabilized, users continue to report issues with frozen accounts and delayed withdrawals. The incident underscores broader distrust in centralized exchanges, particularly as decentralized alternatives gain traction.

In a separate development, Bitcoin's market outlook remains mixed. Despite an $8 billion influx into the "Bitcoin money vessel," recovery has been hindered by a lack of ETF inflows following a record $19 billion market crash in October, according to a Cointelegraph article. Analysts from Bitfinex predict Bitcoin could reach $140,000 in November if ETF inflows rebound and the Federal Reserve eases monetary policy. However, risks such as U.S.-China trade tensions and geopolitical instability could temper gains.

The interplay between Solana's resurgence, MEXC's crisis, and Bitcoin's volatile trajectory highlights the dynamic nature of the crypto market. While institutional adoption and regulatory developments offer long-term optimism, short-term volatility and trust issues in centralized platforms remain critical challenges.