Solana (SOL) has become one of the top losers in the list of top cryptocurrencies in the past 24 hours.
Announcements by OKX and Binance
OKX and Binance are among the top crypto exchanges known throughout the world for their strong user bases and trading volumes.
Both exchanges have recently announced that they have revoked the deposits feature of Tether (USDT) and USD Coin (USDC). Initially, the announcements confused the crypto communities.
The users were not able to understand why the exchanges had suspended USDC and USDT. This is when the officials at the exchanges posted the reason for suspending the two largest stablecoins.
The officials clarified that they had suspended the deposit feature for the USDC and USDT which are based on the Solana blockchain.
In reality, the exchanges had blocked the Solana USDT and Solana USDC on their platforms for the users. Still, the communities were a bit confused about the decision made by the exchanges.
The reason is Solana’s strong ties with the founder of the FTX exchange, Sam Bankman-Fried (SBF). He was among the most prominent and top supporters of the Solana blockchain.
With SBF’s exchange filing for bankruptcy, leaving millions of people at billions’ worth of losses, the exchanges decided to suspend the particular stablecoins.
Solana’s trading price has fallen all the way down to $13.26 at the time of writing, after plunging more than 5% in the past 24 hours.
YTD Loss of SOL is Over 90%
The trading price of SOL has experienced a 5% decline in the recent trading session. The decline was recorded after both exchanges announced the temporary suspension of Solana-based stablecoins.
The users are currently unable to process deposits for the USDT (SOL) and USDC (SOL). The users are to face no problems when processing deposits for the USDT and USDC stablecoins.
Crypto.com was the first cryptocurrency exchange to take safety measures and suspend deposits for the said stablecoins. They also confirmed that the deposit suspension would be temporary.
Neither of the exchanges has confirmed when they plan on lifting the suspension from the respective stablecoins.
The exchanges suspending the deposit features have cited industry events and crashes caused by the FTX exchange.
Solana has been one of the most supportive networks behind the FTX exchange and its founder, Sam Bankman-Fried.
It is due to its connection with the FTX brand that is causing problems for the Solana network. Even in the past 60-minutes, SOL’s trading price has dipped 3% and it now trades at a low of $13.26.
From year to date, SOL has lost more than 90% of its value and it currently trades at $13.26.
Given the current situation of SOL and its connection with FTX, it is recommended that investors stay away from investing money in it.