Solana gets hacked. $320 million stolen through a Wormhole
Wormhole is one of the largest bridges between Solana and Ethereum. Wormhole lets you take your Ethereum and send it into a contract where it will issue you wrapped Ethereum on Solana. From there, your pegged Ethereum will go up and down perfectly with real Ethereum. What happens when the locked Ethereum gets stolen and you can't unwrap your tokens? What happens if half of the wrapped Ethereum gets stolen and you can't unwrap your tokens.
If you hold wrapped Ethereum on Solana, you must trust that a bridge will be there to go back. You trust that Solana won't break. You trust that Ethereum won't break or become worthless. That is a lot of trust.
There is less trust involved if you own native Bitcoin or native Ethereum and hold them in a wallet. Bitcoin could fail, but it seems like a pretty good bet that it will keep going for a while. It seems more stable than many fiat currencies. It also seems that Ethereum isn't going anywhere. I am not pleased with the whole upgrade but with the most supporters and the most stakers and the most miners, Ethereum is a pretty good bet.
When it comes to the future, I don't think Solana or Avalanche is going to win out. I think Kuchain, Smart Chain, Cronos, or one of the other Centralized started decentralized networks will win. Crypto.com and FTX have the best marketing and right now I think marketing makes a big difference. Not everyone is going on Discord and Reddit to learn things. Some people still need to see Matt Damon tell them to be bold and take risks.
Wormhole said that they plan to replace the lost Eth but I wonder how. Do they have millions of dollars just lying around not working? Maybe Solana will bail them out. They have the money to do so. I don't think anyone else has the reason to do it. If I had anything on the Solana network, I would be unwrapping it and bringing it back to the native chain. I think you could see an old fashione bank run where the bank has a line of people waiting to take out money but the bank doesn't actually have enough to cover deposits.
The founder of Ethereum doesn't think bridges will be around much longer. I think a combination of centralized exchanges and decentralized exchanges and centralized decentralized exchanges will bring the liquidity needed without the need for fake pegged tokens that can go missing at the drop of a hat.