David Sacks, Donald Trump’s recently appointed “Crypto Czar,” brings not only policy expertise but also personal investment experience to his new role.
As a partner at Craft Ventures, Sacks is an indirect investor in Solana, a blockchain he believes holds the potential to surpass Ethereum as the leading smart contract platform.
Sacks’ investment ties to Solana date back to 2017, when Craft Ventures invested in Multicoin Capital, a venture capital firm that was one of Solana’s early backers.
While discussing the investment, Sacks described the move as a calculated bet on a nascent crypto market. This decision has since paid off massively. Specifically, the Solana-related fund achieved a return of about 100x, generating over $1 billion in returns.
Why Sacks Believes in Solana
Despite market turbulence, including the FTX collapse that cast shadows on Solana, Sacks has remained optimistic. He revealed that he chose to hold his Solana positions, expressing confidence in the blockchain’s technical advantages and long-term potential.
“Solana represents a faster, cheaper alternative to Ethereum,” Sacks remarked in a podcast, highlighting Solana’s fraction-of-a-penny transaction costs and superior scalability. These features have made Solana increasingly attractive for NFTs and decentralized applications, presenting it as a strong contender to Ethereum in blockchain.
Sacks also noted the growing sentiment in Silicon Valley that Solana could eventually “flip” Ethereum, becoming the preferred platform for developers and users. While Ethereum remains dominant, Sacks believes Solana’s technical strengths provide a pathway to rival Ethereum’s market position.
In his words back in 2022:
“Even if it doesn’t flip Ethereum, it’s the number eight crypto right now. People are betting it could go to number three or higher.”
Indeed, Solana’s market position has improved over the years. It currently ranks as the fifth biggest crypto by market cap, despite having recently been overtaken by XRP.
Sacks’ New Role in Shaping U.S. Policy on AI and Crypto
In his new role as the White House Director of AI and Crypto Tech, Sacks will steer policies that ensure America’s dominance in these sectors. He will collaborate with key stakeholders to establish the framework for the crypto industry, offering the long-awaited legal clarity.
Additionally, Sacks will focus on protecting free speech online, addressing the bias and censorship issues often associated with major tech companies.
With a successful track record as an investor and entrepreneur, Sacks founded the influential company Yammer, which was acquired by Microsoft and served as PayPal’s COO during its early days.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
