The crypto industry has been a chaotic experience for all crypto traders and investors since the recent news of Binance, the famous crypto exchange company, acquiring its rival company, FTX, due to a liquidity crisis. This news did not sit well with those caught in the unexpected firestorm, as the crypto market has witnessed a significant dip in almost all cryptocurrencies, including the big names in the crypto market.
Following the recent wave of tragic news is the flashing report that Crypto.com has temporarily halted all $USDT and $USDC withdrawals and deposits on the Solana blockchain. This is sudden but given the light of recent events. Crypto.com issued the swift suspension of withdrawals and deposits on the Solana chain after releasing a statement about its actions. Although, the company did state that the withdrawals of USDC and USDT would be permissible on other supported networks.
Soon after the suspension of transactions on the Solana chain, the crypto exchange giant, Crypto.com stated that it was also waiving off retrieval fees for depositing USDT and USDC on the Solana network for the next two weeks.
The Solana (SOL) price has drastically dropped since the FTX saga as Alamada Research, which is also being controlled by billionaire and owner of FTX Sam Bankman-Fried, invested in the blockchain project. In the past couple of days, the price of SOL dropped nearly 50%. Earlier today, it was reported that Solana (SOL) suffered a dip from $21 to $30.
Anatoly Yakovenko, the co-founder of Solana, announced on Twitter that “Solana Labs, a US corp, didn’t have any assets on FTX, so we still have tons of runway, and luckily still a small team.”
The Catastrophic Crypto Crash
It all seemed like all was fine with the popular crypto exchange, FTX, after the recent announcement by its CEO, Sam Bankman-Fried, who mentioned on Twitter just last weekend that he was a significant donor in the USA midterm elections.
The billionaire and his company seemed to be performing exceptionally well till the CEO of his rival company, Binance, also announced that there was a possibility of Binance acquiring FTX due to the constant crypto decline in the crypto market. Binance CEO, Changpeng Zhao, said that the fall of FTX is not suitable for anyone in the crypto industry.
As expected, this news about the FTX sudden meltdown has troubled the minds of millions in the crypto industry as customer confidence is shaken.
Crypto.com Remarks On FTX Exposure
Since the tragic news of FTX, several companies have come to declare their assets and how much loss can be expected from the FTX crash. The CEO of Crypto.com, Kris Marszalek, said it is a sad day for the crypto world after Binance announced its possible acquisition of FTX as a way of assisting the exchange company cover for its liquidity. The CEO added that Crypto.com has an almost insignificant exposure to the FTX meltdown.
Direct exposure of Crypto.com to FTX is less than $10 million, which is inconsequential compared to its global revenue of over $1 billion for the past two years. Kris stated that Crypto.com would continue to achieve enhanced regulation and transparency in the industry.
“Our direct exposure to the FTX meltdown is immaterial,” said Kris Marszalek.
In declaring themselves free of the tragedy that has befallen FTX, many crypto exchanges like OKX and Coinbase have said they also have no significant exposure to FTX.
Although Solana is mildly affected by the recent FTX crisis, Crypto.com customers are wondering why the company would issue a sudden decision to halt the transactions of stablecoins USDC and USDT on the Solana blockchain. This can only be perceived as a preventive method by the company not to get burned by the wildfire that has spread throughout the entire crypto industry.
Could this be the beginning of the end of the famous and fast-paced blockchain, Solana, as this recent chain of events has affected the ecosystem? However, others speculate that the suspension of depositing and withdrawals of USDC and USDT by Crypto.com is to allow Binance the chance to buy FTX and let the drama in the crypto world come to ease once again.
Conclusion
The crypto market has been in a frenzy with the recent events that have shaken the very core of the Web3 universe. It is no surprise that the price of SOL will drop. However, no one expected the sudden decision of Crypto.com to suspend the deposits and withdrawals of $USDT and $USDC on the Solana (SOL) blockchain.
