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.
The email continued to say that stablecoin deposits in other ecosystems, including Ethereum and Cronos, would not be impacted.
Solana is a smart contract platform that is positioned as a competitor to Ethereum offering high speeds and low fees. It hosts a range of decentralized finance apps, but a large portion of its total supply is controlled by SBF’s Alameda Research trading firm, and FTX – the exchange firm that imploded this week.
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.
Stablecoins like USDC and USDT, which stay “pegged” to the price of $1, are vital instruments in the volatile world of decentralized finance. It’s unclear why, exactly, Crypto.com was forced to suspend activity.
UPDATE (Nov. 9, 21:37 UTC): Adds a statement from Crypto.com CEO Kris Marszalek.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.