Several crypto exchanges are now suspending deposits and withdrawals of USDT and USDC tokens built on Solana after preparing to delist them from exchanges.
The incident in which exchanges delisted USDT and USDC tokens built on Solana, but without a clear reasoning, led the community to speculate that it may have been caused by the FTX crisis.
Binance then allowed USDT deposits after verification. But there is no further update at this time.
“Binance reserves the right to post, modify, change or cancel the post at any time due to other reasons without prior notice.”
On the other hand, the OKX trading website has also come out.announceIt has removed USDC, USDT built on Solana from the exchanges since 3am UTC on Nov. 17, and deposits and withdrawals of both tokens have been suspended.
Bybit also announced the suspension of USDT, USDC on Thursday, while BitMEX Suspension of USDT deposits from 13.20 UTC onwards
On-chain data reveals that there are more USDC in circulation on the Solana platform than USDT, although USDT has a higher market cap. Solana is valued at over $1.9 billion, representing 1.3% of the USDT market capitalization.
What is the cause?
Neither Binance, OKX, ByBit, BitMEX have given much reason to suspend or remove USDC, USDT on Solana from the exchange. This has led the community to speculate that it might be caused by the FTX crisis that has affected big companies like BlockFi and Genesis.
FTX founder Sam Bankman-Fried Is a big supporter of Solana. After the FTX crash, SOL value dropped more than 50%.
Wrapped Bitcoin on Solana dropped more than 90% due to the firms backing the value of these coins, FTX and Alameda.
USDT, USDC on Tether and Circle have not suffered a financial crisis, and Circle has confirmed that USDC on Solana has a 1:1 backing and can be redemptive.
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