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Duplicate of: https://news.ycombinator.com/item?id=31806191

There has been a lot of confusion about this - note that it has nothing to do with Solana.

Solend is a (badly designed, clearly) application running on Solana.

Nitpick but, it's not quite right to say it has "nothing" to do with Solana, since (as you note) it's something that runs solely on Solana, and the decision was made out of a concern for Solana's price and the broader Solana ecosystem.
Liquidation could crash Solana's price?
I’m pleased that the crypto meltdown is happening before the speculators convinced people to make it an actually significant part of the economy. Let us all see on display the failed promises of decentralization and deregulation.

The fact that it is even a question that an account needs to be taken over to save an entire currency from insolvency is proof that nobody should touch the stuff.

Until the SEC starts getting people put in prison, the entire crypto sphere should not be trusted by anybody.

The whole economy is melting down. Crypto will be back in a few years.
Smaller than before, with appropriate securities regulation and audit, I hope.
There is just no way the SEC can deal with all the new projects coming out every month. It hasn't even gone after most of the ICO's of 2017.

Why do you think it will be smaller? There are more VC funds than ever before pumping more money into the system.

VCs are about to starve; this makes everyone more selective.

Next time around, when things pick back up, expect the SEC to be engaged from the beginning.

I expect them to go after big fish like popular decentralized exchanges and DeFi projects that offer staking.
To compare the crypto implosion to the broader economic recession, as though they're at all equivalent, is to say the least an error in scale. I suspect people who watched the Hindenburg said similar things: Well, you know, planes crash from time to time, but trust us, blimps will be back.
It became more clear during the pandemic. Speculation is a human need. It's not going away. See the reality for what it is and not what you wish it to be.
> Until the SEC starts getting people put in prison, the entire crypto sphere should not be trusted by anybody.

They are going to do just that: https://www.sec.gov/news/press-release/2022-78

And why wouldn't they? Crypto isn't a magical vaccum where existing laws don't apply.

The SEC seem to be heading in that direction, but they have been slow to react and haven't yet exercised reasonable regulation.
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