Binance, OKX and Bybit suspend USDT and USDC deposits on Solana

Major cryptocurrency exchanges proceed to hold out measures within the aftermath of FTX collapse, now halting deposits in Solana-based Tether (USDT) and USD Coin (USDC).

Binance introduced on Nov. 17 that deposits of Solana-based USDT and USDC have been “briefly suspended till additional discover” on the platform.

The change referred to the tokens as “USDT (SOL)” and “USDC (SOL),” because the USDT and USDC stablecoins stay accessible for deposit by way of different blockchains.

Binance didn’t present extra data on the measure, including that it “reserves the precise in its sole discretion to amend or change or cancel this announcement at any time and for any causes with out prior discover.” The agency subsequently resumed deposits for Solana-USDT.

Other exchanges reminiscent of OKX and ByBit have additionally delisted Solana-based stablecoins for deposits. OKX suspended their deposits at 3:00 am UTC on Nov. 17, whereas ByBit reportedly disabled such deposits as of Nov. 17 as effectively.

Source: Twitter

According to the on-chain data, the supply of Solana-USDC is 62% bigger than the supply of Solana-USDT. The total amount of USDC circulating on Solana amounts to five billion USDC ($5 billion), or 11% of the token’s complete market capitalization on the time of writing.

The complete quantity of Solana-based USDT stands at 1.9 billion tokens ($1.9 billion), or simply about 1.3% of USDT’s complete market cap.

USDC issuer Circle subsequently took to Twitter to state that USDC on Solana is working as typical and there aren’t any points with issuing or redeeming the stablecoin. “USDC is at all times redeemable 1 for 1 for US {dollars}. Any quantity. Any time. For Free. Always,” the agency added.

Solana is a decentralized blockchain with an related cryptocurrency, SOL (SOL), that has been related to having shut ties with Sam Bankman-Fried’s troubled crypto change, FTX. (Bankman-Fried was an early investor in Solana by way of Alameda Research.) Amid the continued FTX disaster, SOL has been tanking alongside FTX Token (FTT) and different related cash.

Related: Binance to liquidate its whole FTX Token holdings after ‘current revelations’

The suspensions of Solana-based USDT and USDC have triggered much more purple for SOL, with the cryptocurrency plummeting 7% on the most recent information. At the time of writing, SOL is buying and selling at $13.1, down about 60% over the previous 30 days, in keeping with CoinGecko.

Binance, OKX and Bybit suspend USDT and USDC deposits on Solana
Solana 30-day worth chart. Source: CoinGecko

This information comes quickly after Binance introduced plans to take away USDC as a tradable asset from its platform. The change permits USDC deposits however routinely converts them to its in-house stablecoin, Binance USD (BUSD).

Update 4:15 AM UTC: Binance subsequently resumed deposits of Solana-USDT token on Nov. 17.