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The German-based cloud service provider Hetzner has blocked Solana validators from accessing its services in its latest move to discontinue crypto-related activities on its servers.

In a recent press release shared by a Twitter user, Hetzner directed all validators to delete their crypto-related activities to have their servers unlocked.

Accordingly, the company has suspended its servers from all crypto-based activities, indicating that Hetzner will block all crypto users on their platform. However, the firm requested that the unnamed validators remove all their crypto-related activities from their servers to give them access to their accounts.

The co-founder of Solana Labs, Anatoly Yakovenko, along with the Head of Communication at the Solana Foundation, Austin Federal, confirmed the new development in a Twitter post. In addition, the executives urge the Solana validators to move over to a crypto-friendly cloud service provider.

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Previously, Hetzner made headlines after barring Ethereum node operators from accessing its services. Before then, the German cloud service provider accounted for nearly 16% of all nodes in the Ethereum ecosystem.

However, Ethernodes data shows that Hetzner now provides less than 12% of all Ethereum’s nodes following the event. According to RockawayX’s dashboard, the delinquent stake ratio of the Solana network has dropped below 10% at the time of going to press.

As a result, the delinquent stake operator will prevent validators from earning further rewards. Meanwhile, the latest development has not impacted the Solana network, as all operating parts have been functional over the past 24 hours.

FTX Fall Hits Solana Blockchain

Following the epic crash of the FTX crypto exchange and Alameda Research trading firm, the Solana blockchain network faces some challenging periods. Investors began panicking, with some demanding the return of their staked assets under the blockchain’s security protocol.

The FTX tremors are such that almost $800 million worth of SOL tokens is expected to be unstaked as of November 9, 2022. Earlier in the week, concerns over the crisis rocking Alameda Research had been growing.

Experts reveal that the trading firm will likely sell its SOL holdings to raise some liquidity. The revelation sent the value of SOL tumbling, with investors rushing to get ahead of the pressure.

Moreover, the event has taken on another dimension as Solana validators are reportedly planning to unlock almost $800 million of SOL assets in what the industry describes as “Epoch 370.”

However, analysts are debating whether traders would choose to dump their SOL tokens as soon as they recover their assets. The move has impacted the price of SOL as fears among traders continue to spread.

According to a research lead at FundStrat, Sean Farrell, a drop in the amount of staked SOL might indicate that traders are looking to sell the entire or part of their positions. In the Solana ecosystem, an “epoch” signifies a period where staking rewards are earned by users and issued by the network.

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George Ward

By George Ward

George Ward is a crypto journalist and market analyst at Herald Sheets, known for his engaging articles on the latest digital currency trends. With a background in finance and journalism, he presents complex topics accessibly. George holds a degree in Business and Finance from the University of Cambridge.