Binance and other leading crypto exchanges have halted Solana (SOL) blockchain stablecoin repositories. The companies published a official statement claiming that the measure will be temporary, but that it could have harmful implications for the SOL ecosystem.
Solana (SOL) is trading at $13.5, with a loss of 5% in the last 24 hours and a loss of 3% in the previous week. The cryptocurrency is seeing significant losses across all time frames due to the recent event surrounding FTX and the contagion affecting the crypto industry.
Binance stops operations with Solana, is this blockchain in danger?
Binance, OKX, Bybit and other top crypto exchanges have taken a similar step. The platforms suspended operations with USDC and USDT stablecoins on Solana but did not explain their decision to users.
For example, Binance posted the following message through its social media and official website:
Dear financial friends, USDC (SOL) and USDT (SOL) deposits have been temporarily suspended until further notice. Thanks for your help!
The crypto trading platform has not specified when it will resume stablecoin operations with Solana. OKX has taken a tougher step by removing digital assets altogether. Similar to Binance, the exchange has kept its reasoning in the dark.
On social media, users speculated about the reasons for this move by crypto exchanges. Some believe the delisting is prompted by the collapse of FTX and its former CEO and founder Sam Bankman-Fried.
The former FTX leader was a well-known Solana bull. The collapse of FTX could have unintended consequences for crypto companies, projects, and crypto ecosystems. The market believes that recent events could have a negative impact on SOL.
Bankman-Fried and other FTX investors are believed to have racked up millions of dollars in SOL. The company is in the middle of its bankruptcy process. Therefore, it is expected that the bankruptcy court may order the liquidation of all Solana funds or other cryptocurrencies in this proceeding.
I will buy as much SOL as you have, right now, at $3.
Sell me anything you want.
So fuck you.
— SBF (@SBF_FTX) January 9, 2021
If so, the price of SOL could face massive selling pressure. Anything backed by FTX or tied to the failing crypto exchange seems likely to go its way.