South Korean exchanges Upbit and Bithumb have suspended deposits for Synthetix (SNX) tokens after it was flagged by the Digital Asset Trade Alliance (DAXA) for potential dangers.
DAXA, the self-regulatory group establishing trade requirements for South Korean exchanges, designated SNX as a cautionary merchandise.
Property receiving this designation usually endure rigorous evaluations to find out whether or not buying and selling can proceed or if delisting is critical.
Exchanges might take motion, corresponding to including a warning tag to the asset and urging traders to take warning when partaking with it. Buying and selling platforms also can carry out further measures, like blocking deposits or suspending buying and selling assist briefly.
Upbit and Bithumb block SNX deposits
In response to the designation, the largest exchanges in South Korea mentioned they’re blocking deposits for SNX tokens on their platforms.
Upbit announced that it had added a buying and selling warning ticker and suspended token deposits. The trade mentioned it had been monitoring the developments associated to the Synthetix USD (sUSD) depegging. It added that this occasion might injury traders by means of potential volatility, as SNX is used as collateral for sUSD.
The trade added that it had decided an absence of use instances for the asset, which can trigger traders to undergo losses. Upbit mentioned it will conduct a complete evaluation to determine whether or not to delist the asset or resume regular operations for the token.
Bithumb has additionally blocked deposits for SNX and added a cautionary tag for the token. Nonetheless, the trade mentioned this choice might be overturned relying on inside circumstances. If the explanation for the designation is resolved, Bithumb mentioned it will elevate the restrictions.
Korbit and Coinone additionally printed investor alerts to warning merchants. The 2 exchanges added cautionary tags to SNX tokens to alert traders who might need to commerce the token.
Cointelegraph reached out to Synthetix for remark however didn’t get a response by publication.
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sUSD struggles to recuperate greenback peg
On April 10, the sUSD stablecoin dropped to a five-year low of $0.83 after struggling to keep up its greenback peg within the first quarter of 2025. With the stablecoin being collateralized by the challenge’s native asset, Cork Protocol co-founder Rob Schmitt in contrast the token to Terra USD (UST), which collapsed in 2022. Nonetheless, Schmitt mentioned that sUSD has a “extra manageable” debt system.
On April 18, the stablecoin dipped further to $0.68, with SNX falling by 26% in a 30-day interval. A Synthetix spokesperson advised Cointelegraph that their group has brief, medium and long-term plans to mitigate the dangers.
On April 21, Synthetix founder Kain Warwick threatened SNX stakers with “the stick” in the event that they didn’t take up a newly launched staking mechanism to repair the sUSD depeg. The chief mentioned they could put additional stress on stakers in the event that they don’t see sufficient momentum on the newly carried out mechanism.
Because the warning, sUSD costs elevated by 27%. On April 24, the stablecoin briefly reached $0.87. Nonetheless, the token has nonetheless did not recuperate its greenback peg.
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