Thursday, November 17, 2022
HomeCryptocurrencyWhy Binance Halted Transactions With Solana Stablecoins

Why Binance Halted Transactions With Solana Stablecoins

Binance and different high crypto exchanges halted stablecoin deposits from the Solana (SOL) blockchain. The businesses launched an official assertion claiming that the measure might be short-term, but it surely might have dangerous implications for the SOL ecosystem. 

Solana (SOL) trades at $13.5, with a 5% loss within the final 24 hours and a 3% loss within the earlier week. The cryptocurrency is recording important losses throughout all timeframes as a result of latest occasion surrounding FTX and the contagion impacting the crypto business. 

Solana SOL SOLUSDT FTX Binance
SOL’s worth tendencies to the draw back on the day by day chart. Supply: SOLUSDT Tradingview

Binance Halts Operations With Solana, Is This Blockchain In Hazard?

Binance, OKX, Bybit, and different high crypto exchanges took the same measure. The platforms suspended operations with stablecoins USDC and USDT on Solana however failed to elucidate their choice to the customers. 

For instance, Binance posted the next message by way of its social networks and its official web site:

Fellow Binancians, Deposits of USDC (SOL) and USDT (SOL) have been quickly suspended till additional discover. Thanks in your assist!

The crypto buying and selling venue didn’t specify when they may resume stablecoin operations with Solana. OKX took a stricter measure by absolutely delisting the digital belongings. Much like Binance, the change stored its reasoning at midnight. 

Throughout social media, customers have been speculating concerning the causes for this choice by crypto exchanges. Some consider the delisting is motivated by the collapse of FTX and its former CEO and founder Sam Bankman-Fried. 

The previous FTX government was a well known Solana bull. The collapse of FTX may create unexpected penalties throughout crypto corporations, tasks, and crypto ecosystems. The market believes latest occasions might negatively impression SOL. 

Bankman-Fried and different FTX buyers have been thought to have amassed hundreds of thousands of {dollars} in SOL. The corporate is in the midst of its chapter course of. Due to this fact, there are expectations that the Chapter court docket may order the liquidation of any funds in Solana or different cryptocurrencies on this proceedings. 

In that case, SOL’s worth might face huge promoting strain. Something FTX-backed or linked to the failed crypto change appears vulnerable to following its path. 



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