Crypto.com has announced the suspension of Solana USDC and USDT withdrawals due to the instability, volatility, and recent crisis with the FTX exchange. That is, it would halt all Solana stablecoin withdrawals in its exchange. Reasons behind these decision is unknown to the public.
Halting All Solana Related Transactions
The cryptocurrency exchange platform Crypto.com has decided to halt all withdrawals of stablecoins connected to Solana, including USDC and USDT. Crypto.com took this cause of action after the crisis of yesterday, which was as a result of the liquidity in the FTX exchange. The Solana token, SOL, was negatively impacted by this event yesterday which caused havoc in the cryptocurrency market and community.
Users were informed of this decision on Wednesday via emails; a statement stating that all withdrawals and deposits of Solana’s stablecoins from the exchange would be suspended immediately.
However, this information also made it clear that only Solana tokens would be under this siege and that other tokens on the platform, such as Ethereum, would be unaffected and would continue to function normally.
Solana is a smart contract-based competitor to Ethereum that outperforms it in many ways, including transaction speed (it can process over 40,000 transactions per minute) and low gas fees (transactions can be processed for as little as $0.1).
Additional Decentralized Finance apps are hosted on it in comparison with the Ethereum Network.
Solana’s Ties To FTX
FTX Alameda Research is in charge of a sizable portion of its total supply, that is why Solana was greatly affected.
When the FTX Alameda encountered this crisis and decided to liquidate their holdings, it led to a sizable dump in Solana tokens.
This crisis had a significant negative impact on the Solana token, whose price fell below $15 and over 92% below its all-time high at this time last year.
However, because Solana stablecoins are pegged to the US dollar, they were unaffected by the crisis and investors who left their tokens in the stables were also unaffected. However, Crypto.com’s decision to halt all withdrawals and delist has made it difficult to withdraw money from this exchange.
Even after being questioned, Crypto.com has not provided any information regarding the cause of this action, so the reason why is still unclear.
However, until further notice, all transactions involving Solana tokens have been suspended.
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