Crypto.com Halts Solana USDC and USDT Deposits, Withdrawals
Cryptocurrency exchange platform Crypto.com has halted the flow of two top Solana ecosystem stablecoins, as the implosion of Sam Bankman-Fried’s FTX empire continues to wreak havoc across the wider crypto ecosystem.
Citing “recent industry events” in an email to users Wednesday, Crypto.com said “effective immediately” the platform would be “suspending deposits and withdrawals of USDC and USDT on the Solana Blockchain in the Crypto.com App and Exchange.”
The email continued to say that stablecoin deposits in other ecosystems, including Ethereum and Cronos, would not be impacted.
Solana is a smart contract platform that is positioned as a competitor to Ethereum offering high speeds and low fees. It hosts a range of decentralized finance apps, but a large portion of its total supply is controlled by SBF’s Alameda Research trading firm, and FTX – the exchange firm that imploded this week.
Solana’s native SOL token suffered as a result of FTX’s collapse, dropping over 40% on Wednesday at a price of $14.37. This is 92% below its price from a year ago.
Stablecoins like USDC and USDT, which stay “pegged” to the price of $1, are vital instruments in the volatile world of decentralized finance. It’s unclear why, exactly, Crypto.com was forced to suspend activity.
Representatives for Crypto.com did not immediately respond to CoinDesk’s request for comment.