Several major exchanges have stopped deposits and withdrawals of Solana-based stablecoins and the top two stablecoins are USDT and USDC.

The wave of delisting comes on the heels of the massive Solana price crash that followed the collapse of FTX. The latter is a trading platform known to be closely associated with the Solana network.

Stop-outs for Solana-based stablecoins:

On Thursday, Binance announced that deposits of USDC and USDT coins running on Solana have been temporarily suspended until further notice, without providing any explanation.

Binance subsequently resumed processing deposits for USDT after an internal evaluation and review, without any further updates about USDC.

Read:Kraken acquires a staking crypto platform to expand its services

Added:

Binance reserves the right in its sole discretion to modify, change or cancel this advertisement at any time and for any reasons without prior notice.

Similarly, OKX revealed late Wednesday that it will delete these digital tokens completely starting at 3:00 AM UTC on November 17.

This includes suspending both deposits and withdrawals for both currencies in Solana.

Bybit also halted USDC and USDT deposits and withdrawals on Thursday, while BitMEX temporarily halted USDT deposits at 13:20 UTC.

Data shows that the supply of USDC circulating on Solana is twice as large as the supply of USDT on the network, even though USDT has a larger market capitalization overall.

What is the problem?

The exchange offered a simple explanation for delisting the Solana-based stablecoin, leaving Twitter to speculate about their motives.

Some believe it may be related to the FTX crash, from which the infection has already spread to other major players in the industry such as BlockFi and Genesis.

Former FTX CEO Sam Bankman-Fred was a major Solana supporter.

In the aftermath of the FTX crash, the value of SOL plummeted by more than 50%.

Read:One of the largest cryptocurrency exchanges intends to offer its shares on an American stock exchange

The Bitcoin wrapper traded on Solana also lost its peg to Bitcoin and collapsed by more than 90% since the institutions providing reserves for these tokens were FTX and Alameda.

Conversely, USDT and USDC on the Solana network are issued directly by Tether and Circle, which have not reported similar financial problems.

Circle explained that the USDC on Solana remains fully redeemable and backed at a ratio of 1:1.

Meanwhile, Paolo Ardoino, CTO of Tether, commented:

It’s just speculation but it’s possible that the exchanges are seeing a lot of correlation between FTX, Alameda and Solana.

There is a lot of tension.

Read also:

Binance CEO: FTX founder SBF should stop tweeting and fix his problems

CoinEx Egypt promotion continues: register a trade and get 5 USDT