UDSC, USDT moves via Solana suspended
Crypto.com has suspended the withdrawals of its two popular stablecoins, USDC and USDT, on the Solana (SOL) blockchain of its exchange.
In an email sent to its users, Crypto.com said that customers can still withdraw USDC and USDT “at any time using other supported networks, including Cronos and Ethereum”.
The withdrawal took place immediately as a response to “recent industry events”.
SOL to USD
The company’s CEO and founder Kris Marszalek tweeted to confirm the decision, stating that it would not impact the other stablecoin deposits on the exchange.
“FTX was an important bridge/venue for SOL-based stablecoins, we do not want any additional risk to our users coming from this area, hence disabling it,” Marszalek said.
USDT/USDC on other chains operate normally of course.
FTX was an important bridge/venue for SOL-based stablecoins, we do not want any additional risk to our users coming from this area, hence disabling it.
— Kris | Crypto.com (@kris) November 9, 2022
Proof of reserves
The suspension comes at the same time as when Marszalek confirmed that the decision to share company proof of reserves should be “necessary” for crypto platforms.
The idea of transparency and sharing a company’s state of reserves was initially pledged by Binance CEO Changpeng ‘CZ’ Zhao in a bid to build consumer trust and disclose company liquidity amid the ongoing fiasco around the fallout of the FTX cryptocurrency exchange.
Marszalek said: “Crypto.com will be publishing our audited proof of reserves.
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“This is a critical moment for the entire industry. Transparency is more important than ever, and safety and security of users and funds remains the priority. It requires full and collective commitment.”
Solana’s price has dropped 59% from a high of $31.06 on 8 November to a low of $12.51 just 24 hours later.
At the time of writing, SOL was trading at $18.60, up 6.29% in the last 24 hours.
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