South Korea’s leading crypto exchange Upbit announced today that Synthetix (SNX) has been designated as an “investment alert asset” by the Digital Asset eXchange Alliance (DAXA), citing the failure of its sUSD stablecoin to maintain its peg to the US dollar and increasing volatility in the SNX token.
Upbit Marks SNX as Investment Warning Asset Amid sUSD Drop and Volatility
As a result of this classification, Upbit will suspend SNX deposits starting at 15:00 UT on April 24.
The decision follows ongoing instability surrounding sUSD, a stablecoin that is an integral part of the Synthetix protocol and has struggled to maintain its 1:1 value against the US dollar.
This has increased concerns about systemic risks in the Synthetix ecosystem, resulting in increased price volatility in SNX, the protocol’s native governance and collateral token.
DAXA, a consortium of major exchanges in South Korea designed to coordinate risk assessments and investor protections, has implemented the “investment alert” label to warn users about the high risks associated with SNX.
Upbit stated that it will continue to monitor developments and evaluate whether further actions, such as a full delisting, are necessary depending on how the situation develops.
As the exchange evaluates the stability of the protocol and the performance of sUSD, investors are advised to exercise caution and review their exposure to SNX and related assets.
*This is not investment advice.
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