Multiple Exchanges Put A Halt On USDC And USDT Based In Solana

It has been over a week since the FTX exchange crashed. Still, its impact is being felt throughout the cryptocurrency industry.

As the impact grows fiercer, several cryptocurrency firms have started taking measures from their end to stop the contagion from happening.

Solana-Based USDC and USDT Paused by Exchanges

As a result of the FTX collapse, major crypto exchanges such as Binance, OKX, and ByBit have started to take precautionary measures against Solana.

The reports suggest that the exchanges are putting a halt on the deposits for USD Coin (USDC) and Tether (USDT). However, the condition is that the stablecoins being halted must come from  Solana.

Binance Led the Way

Among the exchanges, it was Binance that decided to halt the deposits for the Solana-based USDC and USDT.

The latest on November 17 was the announcement that they had halted the deposits feature for the said stablecoins.

Solana communicated that the halts would be temporary but refrained from providing a definite time period. This means that the exchange has not decided when it will re-enable the deposits.

The exchange announced that the assets they have blocked from being deposited are USDC (SOL) and USDT (SOL).

However, the exchange has confirmed that the USDC and USDT deposits would be carried out as normal.

Blockchains that are other than the Solana network would be able to deposit USDC and USDT as normal.

Even though the entire crypto community knows why the exchange has blocked these assets, Binance has not much information on the matter.

Binance has also mentioned that they have the right to make any kind of changes to the announcement. They may even decide to take the notification off or add more information to it.

The decision of making amendments to the notification would be the sole discretion of the consensus passed by the exchange officials.

Other Exchanges Follow the Trend

ByBit and OKX exchange have also followed the same trend as they have halted deposits for the same assets in their platforms.

From the looks of it, all major exchanges decided on the same day. The OKX and ByBit exchanges also suspended deposits for USDC and USDT on November 17.

Solana Network is Taking a Hit

Just as the FTX incident happened, the trading price of the FTX Token (FTT) experienced a dip. However, Solana is also paying the price for being backed by Sam Bankman-Fried, FTX’s CEO.

In the past 7-days, the trading price of SOL has slipped 20.90%. In the past 30-days, its price has slipped around 60.00%. At the time of writing, SOL is trading at s low of $13.1.

The analysts fear SOL’s price may continue declining if more exchanges keep taking measures similar to Binance and the other couple.