One of Solana's Biggest Risks Just Disappeared. Is It a Buy With $1,000?

Solana (CRYPTO: SOL) just unexpectedly got some bullish news. On Aug. 31, a judge dismissed all claims against Solana Labs, the Solana Foundation, and its executives in the class action lawsuit regarding alleged wrongdoing against investors stemming from coordination between those organizations and the meme coin launchpad Pump.fun (CRYPTO: PUMP). The coin is still 65% below its all-time high set in January 2025.

While the entities most closely linked to Solana now appear to be in the clear, Pump.fun's parent company still faces racketeering claims in the lawsuit. So is Solana a buy with $1,000 on this news, given that Pump.fun is still hosted on its chain and is still the biggest project there by revenue?

Image source: Getty Images.

This was formerly the biggest single risk facing the chain

In January 2025, investors who lost money on Pump.fun meme coins sued the platform's parent, Baton Corporation, over unregistered securities sales. A July 2025 amendment to the legal complaint added Solana Labs, the Solana Foundation, and their executives as additional defendants, alleging racketeering and also unlicensed money transmission. Then, most recently, a judge dismissed all claims against the Solana entities and their executives, while allowing the racketeering claims against Baton and its three founders to proceed.

If the lawsuit against Solana had succeeded, the coin's price could have been severely harmed, as it would have sapped capital from its governance foundation and software development group, leaving the chain with fewer resources to channel toward growth.

But there's still a residual risk here.

Pump.fun brought in an average of $1.2 million in net revenue per day over the 90 days ending on Sept. 9.

Over the last 30 days of that stretch, its users paid a bit less than half of the $361.8 million in total fees across all protocols on Solana. In other words, if the lawsuit ultimately finds the founders of Pump.fun liable for the racketeering allegations, it might need to cough up a lot of money, and its growth or its operations could be hampered significantly. And the transaction fees its users generate for Solana would shrink along with it.

So is Solana a buy with $1,000?

Despite lingering risks from the parts of the class action that still name Pump.fun's parent, Solana is worth buying today with $1,000, and it's now also worth buying for investors who might have been a bit too risk-averse to consider investing in it before.

In short, it's making a key reform that will make holding it over the long term an even better proposition than previously.

In late August 2026, holders approved a new governance proposal that will double the rate at which Solana's new issuance decreases. The result is that its supply, while still inflationary, will now dilute holders at a rate that shrinks twice as fast as before.

Between this favorable change and Solana being dropped from the lawsuit, not to mention the strong possibility of a new crypto bull market emerging, now's a good time to buy the coin, assuming you're willing to hold it for at least five years to let its growth play out.

Alex Carchidi has positions in Solana. The Motley Fool has positions in and recommends Solana. The Motley Fool has a disclosure policy.