Binance and OKX recently announced they would temporarily halt deposits of Solana-based USDC and USDT. This led to a fall in the price of Solana (SOL).
- OKX announced that it would be delisting USDC and USDT from Solana and no longer supporting deposits or withdrawals of either cryptocurrency.
- Binance noted it “reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.”
- Additionally, the ByBit exchange delisted Solana-based stablecoins for deposits by 3 am UTC on November 17.
- According to on-chain statistics, the supply of Solana-based USDC is 62% larger than the supply of Solana-USDT. The Solana-based USDC in circulation is about 5 billion. The Solana-based USDT in circulation is about 1.9 billion.
- Following this, USDC issuer Circle tweeted that USDC on Solana runs normally and that there are no problems with issuing or redeeming the stablecoin. In addition, the company noted that “USDC is always redeemable 1 for 1 for US dollars. Any amount. Any time. For Free. Always.”
See Related: The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future
Solana And FTX
- The decentralized blockchain, Solana, was linked to Sam Bankman-Fried’s cryptocurrency exchange, FTX. Through Alameda Research, Bankman-Fried was one of the first investors in Solana holding in excess of $982M worth of SOL in FTXs balance sheet, which was acquired by Financial Times. Along with FTX Token (FTT) and other related currencies, SOL has fallen in value amid the current FTX issue.
- Since the announcement of the suspension of USDT and USDC based on Solana, the price of SOL has fallen by a further 7%, where it now trades at $12.85.
See Related: From Bad To Good To Worse: The Binance And FTX Saga