Binance Temporarily Suspends USDT, USDC Deposits On The Solana Blockchain, Resumes Later

Zinger Key Points
  • Binance did not offer any explanation behind its rationale to suspend the deposits.
  • The stablecoins on Solana have been delisted by crypto exchange OKX and both deposits and withdrawals have been suspended.
Binance Temporarily Suspends USDT, USDC Deposits On The Solana Blockchain, Resumes Later

Cryptocurrency exchange Binance on Thursday temporarily suspended deposits of the stablecoins USDC USDC/USD and USDT USDT/USD on the Solana blockchain "until further notice," but resumed a few hours later.

"After internal assessment and review, Binance has now resumed deposits for USDT (SOL)," the company stated in its official blog post.

Stablecoins USDT and USDC developed and controlled by companies Tether and Circle respectively, are pegged to the U.S. dollar and are available on a number of blockchains, including Solana and Ethereum.

Binance did not offer any explanation behind its rationale to suspend the deposits.

Rival crypto exchange OKX had earlier this week too announced the suspension of deposits and withdrawals of the two Solana-based stablecoins.

Also Read: El Salvador President Nayib Bukele, Tron's Justin Sun To Buy 1 Bitcoin A Day

Similarly, another crypto exchange Crypto.com, citing recent industry happenings, had halted deposits and withdrawals of USDT and USDC on the Solana network.

Notably, these decisions will impact only those users who choose to utilize stablecoins over the Solana network. Those who withdraw via networks like Polygon, Algorand or Ethereum, for instance, would not be impacted.

Like Binance, neither OKX nor Crypto.com offered any justification for their actions.

Meanwhile, Jeremy Allaire, co-founder and CEO of Circle stated, “USDC on Solana is operating as expected and there are no issues with issuing or redeeming USDC. USDC is always redeemable 1 for 1 for U.S. dollars. Any amount. Any time. For Free. Always.”

FTX Crumbled, Solana Stumbled

The Solana SOL/USD tokens of the Solana Foundation have performed poorly since the collapse of FTX last week, which set off one of the most erratic weeks in the history of the cryptocurrency market.

Following FTX's swift descent into insolvency, almost all cryptocurrencies experienced significant losses, but Solana's SOL token suffered the worst.

The token's value has decreased 94.9%, from $259.96 to just $13.13, according to data from CoinGecko at the time of writing.

Next: New FTX Chief Appalled By Mismanagement At Crypto Exchange Under Sam Bankman-Fried

Photo: Shutterstock

Posted In: BinanceBlockchaincrypto exchangeCrypto.comEthereumFTXOKXSam Bankman-FriedSolanaSolana FoundationStablecoinUSDCUSDTCryptocurrencyNewsTop StoriesMarkets