Business News Report
January 30, 2024

Solana Labs Transfers 45 Employees to Anza in Strategic Move for ‘Decentralization Empowerment’

Solana Labs Transfers 45 Employees to Anza in Strategic Move for Decentralization Empowerment

Technology company Solana Labs announced the transfer of approximately 45 of its current 100 employees to its newly established entity, Anza — in a strategic move aimed at contributing to the “decentralization” of Solana’s (SOL) ecosystem.

At Anza, the relocated team members will concentrate on maintaining and enhancing the existing blockchain infrastructure while also leading the development of additional applications and products.

Jed Halfon, the former head of strategy at Solana Labs, will assume the role of Anza’s chief strategy officer. Additionally, Stephen Akridge, co-founder of Solana, and Amber Christensen, the former head of operations at Solana Labs, will transition to Anza.

According to Jed Halfon, establishing Anza represents a “business opportunity to leverage the engineers that we have to start working on other major projects.” It is also seen as a strategy to enhance the credibility and neutrality of the Solana ecosystem by making it more decentralized.

Anza is funded by a grant from the Solana Foundation. Furthermore, the new entity operates under an “employee-owned, for-profit” business model. Notably, Solana’s co-founders, Anatoly Yakovenko and Raj Gokal, do not have any stake in Anza. Meanwhile, Solana Labs holds a 13% ownership share in the firm.

Despite Solana Labs asserting that the spin-off aligns with a broader strategic plan, establishing the new legal entity might also be connected to the heightened legal scrutiny faced by the blockchain technology sector in the past year.

Last year, Jed Halfon informed employees that the decision to establish Anza was partly a response to lawsuits involving Coinbase and Binance. Additionally, it aimed to address the ongoing litigation with Solana investor Mark Young. Before the United States Securities and Exchange Commission (SEC) involvement, Young filed a lawsuit alleging that the Solana native token SOL was an unregistered security, indicating that legal considerations played a role in the decision-making process.

Moreover, Anza was established slightly over two weeks after the SEC contended that SOL was an unregistered security. However, a spokesperson from Solana Labs asserted that the timing was merely coincidental. Thus, Solana’s decision to separate a portion of its employees from Solana Labs into a new entity could be perceived as a strategic approach to illustrate that, at present, SOL is not classified as a security.

However, if the SEC were to initiate an enforcement action concerning SOL in presenting its case, the focus would probably centre on the token’s initial launch and its early years. The ultimate arbiters of successful litigation are potential jurors, as their understanding of the situation holds greater significance than the perspectives of securities experts.

Solana Navigates Regulatory Scrutiny and Controversies

The legal restructuring comes after over a year of scrutiny from regulators and observers within the cryptocurrency sector.

This move follows a period in which Solana faced several controversies, contributing to a decline in the value of the SOL token. Among the factors behind this was the 2022 bankruptcy of FTX, with its founder, Sam Bankman-Fried, having been a significant supporter of Solana. Additionally, there are allegations by the SEC that SOL is an unregistered security.

Recently, cryptocurrency has experienced a substantial upswing, benefiting from the broader resurgence in the cryptocurrency market despite these unfavourable developments.

In navigating the complexities of legal scrutiny and market challenges, the Solana team’s establishment of a legal structure that enhances the decentralization of network management and maintenance while simultaneously safeguarding the company from regulatory scrutiny signifies a proactive move toward resilience.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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Alisa Davidson
Alisa Davidson

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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