Crypto.com has suspended the withdrawals of its two popular stablecoins, USDC and USDT, on the Solana (SOL) blockchain of its exchange.
In an email sent to itsusers, Crypto.com said that customers can still withdraw USDC and USDT “at any time using other supported networks, including Cronos and Ethereum”.
The withdrawaltook placeimmediately as a response to“recent industry events”.
SOL to USD
The company’s CEO and founder Kris Marszalek tweeted to confirmthe decision, stating that itwould not impact the otherstablecoin deposits on the exchange.
“FTX was an important bridge/venue for SOL-based stablecoins, we do not want any additional risk to our users coming from this area, hence disabling it,”Marszalek said.
USDT/USDC on other chains operate normally of course.
FTX was an important bridge/venue for SOL-based stablecoins, we do not want any additional risk to our users coming from this area, hence disabling it.
The suspension comes at the same time as when Marszalek confirmedthat the decision to share company proof of reserves should be “necessary” for crypto platforms.
The idea of transparency and sharing a company’sstate ofreserves was initially pledgedby Binance CEOChangpeng ‘CZ’ Zhaoin a bid to buildconsumer trust and disclose companyliquidity amid the ongoing fiascoaround the fallout of the FTX cryptocurrency exchange.
Marszalek said: “Crypto.com will be publishing our audited proof of reserves.
“This is a critical moment for the entire industry. Transparency is more important than ever, and safety and security of users and funds remains the priority. It requires full and collective commitment.”
Solana price
Solana’s price has dropped 59% from a high of $31.06on 8 November to a lowof $12.51 just 24 hours later.
At the time of writing, SOL was trading at $18.60, up 6.29% in the last 24 hours.
As an expert in the field, my extensive knowledge and experience allow me to delve into the intricacies of the recent developments surrounding Crypto.com's suspension of withdrawals for the stablecoins USDC and USDT on the Solana (SOL) blockchain. The decision was communicated to users through an email, citing "recent industry events" as the impetus for the immediate withdrawal suspension.
Crypto.com's CEO and founder, Kris Marszalek, took to Twitter to confirm the decision, assuring users that it wouldn't affect other stablecoin deposits on the exchange. According to Marszalek, the suspension was a proactive measure to mitigate potential risks associated with the FTX exchange, which served as an important bridge for SOL-based stablecoins.
This move aligns with a broader industry trend of heightened transparency and security measures. Marszalek emphasized the importance of transparency by announcing that Crypto.com would publish audited proof of reserves. This commitment to transparency echoes similar sentiments expressed by other industry leaders, such as Binance CEO Changpeng 'CZ' Zhao. The objective is to build consumer trust by disclosing company liquidity and maintaining openness about the state of reserves.
The suspension coincided with a significant drop in the price of Solana (SOL). Solana experienced a 59% decline from a high of $31.06 on November 8th to a low of $12.51 just 24 hours later. As of the latest available data, SOL was trading at $18.60, reflecting a 6.29% increase in the last 24 hours.
To address the inconvenience caused by the withdrawal suspension, Crypto.com assured users that they could still withdraw USDC and USDT through other supported networks, including Cronos and Ethereum.
This development underscores the dynamic nature of the cryptocurrency market, where rapid responses to emerging challenges are crucial. As the industry emphasizes transparency and security, users can expect further initiatives, such as proof of reserves, to become standard practices among reputable crypto platforms. Stay tuned for updates as the industry navigates these evolving dynamics.
Binance is temporarily suspending withdrawals on the *SOL* network, effective since March 4, 2024. The interruption is attributed to the heightened transaction volume experienced on the network, prompting Binance to take necessary measures.
You might come across a 'Sorry, internet seems to be down', 'Sorry, insufficient funds' or 'A network error occurred' error message when attempting to unstake or withdraw an inactive SOL stake. This can happen if your Available balance doesn't have sufficient SOL to cover the transaction fee.
Can I unstake Solana at any time? There is no lock up period on Solana staking. You can stake and unstake at any time. However, please note that the processing time to unstake SOL takes approximately 3 days.
Token creators might utilize freeze authority for various reasons: Security: If a security breach or hacking incident occurs, the creator can freeze token accounts to prevent unauthorized transfers and minimize potential losses.
To safeguard your funds, you are recommended to enable the 24-hour withdrawal lock, which protects your account by disabling withdrawals for 24 hours to addresses that have been newly whitelisted.
There are a few potential reasons why your transactions might be taking longer than expected: Network Congestion: Even though you're setting a priority fee, if the network is congested, it can still take time for your transaction to be processed.
The time it takes can vary based on network congestion and the transaction fee paid. Typically, USDC transactions are completed within minutes when the Ethereum network is not overloaded.
Increased transaction activity on the Solana network prompts Binance to suspend withdrawals, with optimizations expected to resolve the issue. Binance suspended withdrawals on the Solana network due to intermittent issues. The surge in trading volume on Solana potentially strains the network.
Your crypto withdrawals may be temporarily restricted for a few different reasons: Sign-In From a New Device. Pending Bank Transfer (ACH) Pending Debit Card Transfer (24 hour hold)
The Solana network is facing congestion, attributed to spam transactions. Solana developers are working on solutions, including software patches and updates.
The vast majority of these failed transactions are sent by bots — prototypical extension-based wallet flows would simulate transactions ahead of time before submitting to the chain, whereas a bot is more likely to send the transaction without verifying the execution,” Wong said in a message.
Major congestion issues are plaguing the Solana network, leading to 70% of transactions failing. In response, developers are stepping in. Solana developers announce measures to address network congestion.
One epoch in the SOL network lasts around 2-3 days. It takes one full epoch to deactivate your SOL delegation - once finished you will be able to withdraw it. This will include your original stake and any rewards you earned. E1: Will start deactivating your Stake.
Introduction: My name is Geoffrey Lueilwitz, I am a zealous, encouraging, sparkling, enchanting, graceful, faithful, nice person who loves writing and wants to share my knowledge and understanding with you.
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