One of the leading exchange platforms in the market, crypto.comsuspended deposit and withdrawal operations of two major stablecoins, USDC and USDT, on the Solana blockchain.
In a message to users on Wednesday, the platform reportedly said the suspension was effective immediately.
The note did not state the exact reason behind this decision. However, Crypto.com said stablecoin withdrawals and deposits to other blockchains such as Ethereum and Cronos would resume normally.
In a tweet Thursday, the CEO of Crypto.com, Kris Marszaleksaid the recent developments around ftx and D’Alameda Investigationwho are two of Solana’s biggest backers led to this decision.
“FTX has been an important bridge/road for SOL-based stablecoins, we don’t want to expose our users to additional risk, hence its deactivation,” said declared Marszalek, adding that other blockchains are working normally.
As noted, FTX, then the second largest crypto exchange in the market, was hit by “a significant liquidity crisis”. Initial, Binance had signed a letter of intent to acquire the struggling crypto company but backed out of the deal, saying FTX’s problems were beyond its capabilities.
The news further exacerbated the crypto market crash. The market’s flagship Bitcoin fell to $15,682, a level not seen in two years. Ethereum also fell to USD 1,083, down about 4% in the past day.
Kris Marszalek campaigns for transparency
After the unprecedented collapse of FTX, an exchange considered by many to be relatively healthy, posing as the savior of the crypto sector during the latest post-bankruptcy crash Terra and Celsiusmany observers have expressed concern about the strength of other centralized players.
Facing skepticism, Marszalek said crypto exchanges should publicly share the state of their reserves, a measure previously proposed by Binance. He claimed that Crypto.com will soon release a document proving the reserves audit.
“This is a critical time for the entire industry. Transparency is more important than ever, and the safety and security of users and funds remains the priority. This requires a full and collective commitment,” he said. declared in a tweet posted late Wednesday.
However, some users suggested that this would not be enough. A few people pointed out that it is also important that crypto exchanges do not transact with user funds and that they are transparent about where returns and income come from.
“We need to know if the reserves will be used as off-chain collateral. Will Crypto.com (CDC) commit to full transparency? And where will the revenue returns come from? How does CDC keep the funds away from users who don’t (the program) earn?”, a declared a Twitter user in response to Marszalek’s statement.
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