South Korean exchanges Upbit and Bithumb have suspended deposits for Synthetix (SNX) tokens after it was flagged by the Digital Asset Change Alliance (DAXA) for potential dangers.
DAXA, the self-regulatory group establishing business requirements for South Korean exchanges, designated SNX as a cautionary merchandise.
Belongings receiving this designation usually bear rigorous evaluations to find out whether or not buying and selling can proceed or if delisting turns into vital.
Exchanges might take motion, akin to including a warning tag to the asset and urging traders to take warning when partaking with the asset. Buying and selling platforms can even carry out further measures, like blocking deposits or suspending buying and selling help quickly.
Upbit and Bithumb block SNX deposits
In response to the designation, the largest exchanges in South Korea introduced that they’re blocking deposits for SNX tokens on their platforms.
Upbit announced that it added a buying and selling warning ticker and suspended token deposits. The alternate stated it had been monitoring the developments associated to the Synthetix USD (sUSD) depegging. It added that this occasion might injury traders from potential volatility, as SNX is used as collateral for sUSD.
The alternate added that it had decided a scarcity of use circumstances for the asset, which can trigger traders to undergo losses. Upbit stated it could 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 tokens. Nonetheless, the alternate stated this choice may very well be overturned relying on inner circumstances. If the rationale for the designation is resolved, Bithumb stated it could carry the restrictions.
Korbit and Coinone additionally printed investor alerts to warning merchants concerning the asset. The 2 exchanges additionally added cautionary tags to SNX tokens to alert traders who might need to commerce the tokens.
Cointelegraph reached out to Synthetix for remark however didn’t get a response by publication.
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sUSD struggles to get well greenback peg
On April 10, the sUSD stablecoin dropped to a five-year low of $0.83 after struggling to take care of its greenback peg within the first quarter of 2025. With the stablecoin being collateralized by the venture’s native asset, Cork Protocol co-founder Rob Schmitt in contrast the token to Terra USD (UST), which collapsed in 2022. Nonetheless, Schmitt stated 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 instructed Cointelegraph that their workforce 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 did not take up a newly launched staking mechanism to repair the sUSD depeg. The manager stated they might put further stress on stakers if they do not see sufficient momentum on the newly carried out mechanism.
For the reason that warning, sUSD costs elevated by 27%. On April 24, the stablecoin briefly reached $0.87. Nonetheless, the token nonetheless didn’t get well its greenback peg.
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