Crypto.com Halts Solana USDC and USDT Withdrawls and Deposits | $800 Million SOL Tokens Set to be Unstaked

Date:

Coindesk | Sam Kessler  | Nov 9, 2022

SOL’s funding rates dropped on Wednesday. (Coinglass)

Cryptocurrency exchange platform Crypto.com has halted the flow of two top Solana ecosystem stablecoins, as the implosion of Sam Bankman-Fried’s FTX empire continues to wreak havoc across the wider crypto ecosystem.

  • Mitigating Risk:  Citing “recent industry events” in an email to users Wednesday, Crypto.com said “effective immediately” the platform would be “suspending deposits and withdrawals of USDC and USDT on the Solana Blockchain in the Crypto.com App and Exchange.”
    • The email continued to say that stablecoin deposits in other ecosystems, including Ethereum and Cronos, would not be impacted.
    • Crypto.com CEO Kris Marszalek, in a tweet responding to this article, explained that “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.”
  • Solana’s native SOL token suffered as a result of FTX’s collapse, dropping over 40% on Wednesday at a price of $14.37. This is 92% below its price from a year ago.

Continue to the full article –> here


Coindesk | Jocelyn Yang | Nov 9, 2022

FTX Jitters Hit Solana Blockchain as Almost $800M SOL Tokens Set to Be Unstaked

  • Spillover:  The epic comedown of Sam Bankman-Fried’s FTX crypto exchange and Alameda Research trading firm are making waves in the market for the Solana blockchain’s SOL token – to the point where some investors have apparently become so nervous that they’re demanding back tokens they had “staked” or deposited into the blockchain’s underlying security protocol.

See:  Binance vs. FTX: Clash of the Titans | CZ Selling FTT Tokens | The Story of SBF’s Backroom Binance Deal and Lessons Learned | Binance Drops Bid to Save Rival

  • Solana validators who provide security to the blockchain are set to unlock nearly $800 million worth of their SOL holdings as the end of the token lock-in period known as “Epoch 370” approaches – in fewer than 13 hours.
    • There’s about 76% of eligible SOL tokens currently being staked on the blockchain. The scheduled unlocked tokens represent around 15% of the token’s circulating supply in a single unlock.
    • And analysts are speculating whether investors might dump these soon-to-unlocked SOL tokens as soon as they recover them. SOL’s price recently plunged 42% to less than $14 in the past 24 hours.

Continue to the full article –> here


NCFA Jan 2018 resize - Crypto.com Halts Solana USDC and USDT Withdrawls and Deposits | $800 Million SOL Tokens Set to be UnstakedThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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