Key Takeaways:
- Crypto.com informed clients that it had stopped USDC and USDT deposits and withdrawals on Solana.
- In an email to users, the platform explained that the decision was made in the wake of recent events in the sector.
Customers were informed by Crypto.com that USDC and USDT deposits and withdrawals on the Solana blockchain had been halted due to recent events in the sector.
The Solana chain has already gone up from $21 to $30. Users of the platform have now received confirmation via email that certain deposits and withdrawals won’t be allowed using the blockchain.
One of the cryptocurrencies that has been hit the hardest today is Solana, which has seen the indices drop by 20%.
SOL’s price has significantly dropped from an intraday high of just over $30 to its current price of $20.78, according to CoinGecko. In addition, since reaching an all-time high of $260 in November 2021, the struggling token has lost 92% of its value.
Recently, the Solana network has also experienced frequent network outages. Solana stated that the network was undergoing degraded performance in October and that its developers attempted to identify the problem.
The move was made following a crypto market crash after Binance BNB/USD said it might buy the FTX exchange. Following a statement from crypto.com about the change, it went into effect.
After crypto.com reprimanded withdrawals, the exchange announced it would relinquish recovery fees for deposits of USDC and USDT on the Solana network for two weeks.
It seems that Cyrpto.com is acting responsibly to safeguard itself from what might have been a “FTX risk” to Solana’s DeFi network. The consequences of Solana’s decline could be catastrophic. Therefore, the suspension provides time for the industry and the Binance acquisition to normalise.
After Binance said it might purchase FTX to assist it with its liquidity issues, Kris Marszalek, CEO of crypto.com, simply referred to it as a disheartening event for the crypto space. He claims that the FTX meltdown has little impact on the exchange.
Kris emphasised that crypto.com has consistently kept 1:1 reserves and that doing so is their most fundamental guiding principle. They will work to ensure that this is the norm by which all crypto platforms operate by pushing for increased regulatory oversight and transparency.
Even Solana Labs cofounder Anatoly Yakovenko stated that the company had a large runway because it had no assets listed on FTX. He goes on to say that he is working on some of the most challenging computer science issues , and is also developing Solana because of the community that is growing on the network.
The network’s resilience is being increased by all of these network-level upgrades, including Firedancer and local fee markets, making it an even better environment for builders.
