Schlagwort: blockchain markets

Crypto.com has notified its users that all deposits and withdrawals for Tether’s USDT and Circle’s USDC have been suspended on the Solana network.

Leading crypto exchange Crypto.com notified its customers via email a few hours ago that it had paused deposits and withdrawals for USDT and USDC stablecoins on the Solana network.

Crypto.com told its users that the pause is immediate. Hence, its users can no longer deposit and withdraw USDT and USDC stablecoins on the Solana network.

However, Crypto.com didn’t provide any explanation regarding why it is suspending those transfers. The move shouldn’t cause a problem for users as the USDC and USDT stablecoins exist on a wide range of other blockchains, including Ethereum, Polygon, BNBChain, and Tron. Crypto.com wrote;

“Following recent industry events, please be informed that we have suspended deposits and withdrawals of USDC and USDT on the Solana blockchain in the Crypto.com App and Exchange. This is effective immediately. However, you may withdraw USDC and USDT at any time using other supported networks, including Cronos and Ethereum. Please note that retrieval fees for depositing USDC and USDT on the Solana network in the Crypto.com App and Exchange will be waived for two weeks, starting from today.”

Crypto.com is adding to the market chaos caused by FTX’s ongoing struggles. Crypto exchange FTX had to pause withdrawals on its platform as it struggled to complete liquidity orders.

Binance initially agreed to acquire FTX and take on its numerous liabilities but revealed a few hours ago that it would no longer go through with the deal. According to Binance, FTX’s situation is beyond where Binance can help at the moment.

Our direct exposure to FTX meltdown is immaterial: less than $10m in our own capital deposited there for customers’ trade execution.

That’s very little compared to our global revenues surpassing US$1 billion for two consecutive years.

— Kris | Crypto.com (@kris) November 9, 2022

Crypto.com is one of the companies affected by FTX’s recent struggle. However, Crypto.com’s CEO Kris Marszalek said the firm’s direct exposure to the FTX meltdown is immaterial since it has less than $10 million of its own capital deposit on the FTX platform for customers’ trade execution.

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The once cryptocurrency exchange giant FTX is facing an uncertain future following the current liquidity crunch and financial instability. The situation escalated after Binance backed out of a nonbinding agreement to buy out FTX.

According to sources familiar with the developments, Binance pulls out of its intent to take over FTX after going through its financial books.

As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of https://t.co/FQ3MIG381f.

— Binance (@binance) November 9, 2022

The ongoing FTX crisis has pushed thousands of customers to withdraw their funds from the exchange in a bid to avoid having funds locked in the exchange in the event that it collapses completely. But where do you go after leaving FTX?

Best FTX alternatives

Here are the top 5 FTX alternatives that investors can invest with. In case you are looking for a particular crypto exchange that is not included in the list below, you can check out our full suite of broker reviews here.

1. Binance

Binance had a strategic investment in FTX in 2019. In the past few days, it has been embroidered in the FTX crisis and at some point offered to takeover FTX although it has since backed out of the deal. Binance itself operates the largest cryptocurrency exchange by trading volume making it one of the top choices for investors.

 2. Coinbase

Coinbase offers a cryptocurrency trading and investing platform enabling users to buy, sell, and exchange over 170 cryptocurrencies Including Bitcoin, Ethereum, and Dogecoin. It is the largest US-based crypto exchange and it also became the first publicly traded crypto exchange last year after direct listing on the Nasdaq exchange. It can be a good choice for active traders interested in trading and storing multiple cryptocurrencies.

 3. Gemini

Gemini is a regulated cryptocurrency exchange based in New York and available in all states in the US. With industry-leading security features, its own hot wallet, a beginner-friendly platform, robust educational resources, and a comprehensive support centre, Gemini can be a good choice for both beginners and experienced traders.

4. Kraken

Kraken is a United States–based cryptocurrency exchange and bank, founded in 2011. In September 2020, Kraken was granted a special purpose depository institution (SPDI) charter in Wyoming, becoming the first crypto exchange to hold such a charter in the United States. It was one of the first bitcoin exchanges to be listed on Bloomberg Terminal and was valued at $10.8 billion USD by mid-summer 2022. The exchange is quite established making it a good choice for investors.

 5. KuCoin

KuCoin is a secure cryptocurrency exchange that allows you to buy, sell, and trade Bitcoin, Ethereum, and 700+ altcoins. It is a Seychelles-based crypto exchange launched in 2017. Founded as “the people’s exchange,” KuCoin’s rich set of features and low fees make it a compelling choice for advanced crypto investors, particularly outside the US.

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Crypto lending platform BlockFi in a press release on November 7 stated that it will reopen the BlockFi Yield, an interest-bearing digital asset account, by the end of 2022 to US accredited investors.

The Beta version will be available to first select US investors starting at the end of the year. The product will afterwards be available to all US clients at the start of 2023 allowing investors to earn interest on digital assets.

The BlockFi Yield offers competitive interest rates on digital assets with no minimum investment requirement. To access the product, however, US investors will require to complete an investor accreditation process.

So far BlockFi has paid out more than $600 million in interest since it began offering BlockFi Yield.

BlockFi had initially suspended the product in the US

In February this year, BlockFi stopped offering BlockFi Yield to US clients after the US SEC accused the firm of failing to register the product. BlockFi was fined a total of $100 million by the SEC and state regulators which BlockFi agreed to pay. BlockFi has also agreed to stop opening new US accounts.

The charge against BlockcFi came right on the heels of the collapse of Voyager and Celsius, which necessitated scrutiny of the crypto space.

To remain operational in the extended crypto winter, BlockFi laid off about 20% of its workforce, reduced marketing expenses, reduced the salaries of executives, and also removed non-essential vendors. BlockFi also secured $250 million from the currently embattled FTX exchange, as reported in previous news here, in revolving credit.

In preparation for the reopening of the product to US customers, the founder and COO of BlockFi, Flori Marquez, said that the crypto lender is working on having the product registered with the SEC before offering it to the public.

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Crypto market maker Wintermute has confirmed that it has funds stuck in the embattled crypto exchange FTX. However, the firm has said that the amount of funds held in the exchange is not much and they are within their risk tolerance.

Wintermute further said that the funds will not impact its overall financial standings. The firm said that it has put in place risk controls and efforts to remove some of the funds from the exchange prior to the collapse although some funds still remain.

In a tweet Wintermute said:

“We do have remaining funds on FTX, and while this is not ideal, the amount is within our risk tolerances and does not have a significant impact on our overall financial position.”

Firms allay fears of exposure to FTX

As reported in our earlier news, Coinbase, Tether, and Circle have come out to assure their customers that they are not exposed in any way to either FTX or its sister firm Alameda Research after FTX announced plans to sell itself to Binance in the wake of liquidity crunch.

While Wintermute said that it has funds stuck in FTX, it, however, clarified that it has no exposure on FTX’s native token FTT whose price has drastically dropped since the whole FTX saga started.

Wintermute said:

“As a market-neutral trading firm, we do not have any directional exposure to FTT tokens or related ecosystem assets.”

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Several crypto firms have come out to distance themselves with exposure to FTX crypto exchange and its sister firm Alameda amid the financial crisis facing the two firms. This comes after calls from the crypto community for transparency to let users know if there is any risk.

Tether’s Chief Technology Officer Paolo Ardoino has come out to clarify via Twitter that the Stablecoin issuer does not have exposure to either FTX or Alameda. Replying to Wu Blockchain’s tweet that said “Circle and Tether should disclose more of their financial relationship with FTX Alameda to let users know if it’s a risk,” Paolo tweeted said:

“To be clear: #Tether does not have any exposure to FTX or Alameda. 0. Null. Maybe is time to look elsewhere. Sorry guys. Try again.”

Similarly Circle’s CEO Jeremy Allaire took to Twitter to clarify that Circle also does not have any exposure to FTX or Alameda. In his tweet, Jeremy said:

“Circle has no material exposure to FTX and Alameda.  FTX has been a customer of Circle Payment APIs for the past 18 months, providing card and ACH services for customer transactions.  Circle’s crypto payments beta product uses FTX and other exchanges, for BTC/ETH liquidity.”

Coinbase confirms no exposure despite its shares dropping

The CEO of Coinbase, Brian Armstrong, also took the opportunity to assure customers that the crypto exchange has no material exposure to FTX crypto exchange or its native token FTT. The exchange tweeted saying:

“Second, Coinbase doesn’t have any material exposure to FTX or FTT (and no exposure to Alameda).”

Despite the assurance from the exchange’s CEO, Coinbase’s shares started the day with a −1.75 (3.45%) drop.

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