South Korean exchanges Upbit and Bithumb have halted deposits for Synthetix (SNX) tokens following a warning from the Digital Asset Exchange Alliance (DAXA) regarding potential risks.
DAXA, the self-regulatory body forming industry norms for South Korean exchanges, categorized SNX as a cautionary asset.
Assets receiving this classification typically undergo thorough assessments to establish whether trading can proceed or if delisting is warranted.
Exchanges may undertake actions such as applying a warning label to the asset and advising investors to exercise caution when dealing with it. Trading platforms can also implement further measures, like disabling deposits or temporarily suspending trading support.
Upbit and Bithumb suspend SNX deposits
In reaction to the classification, the largest exchanges in South Korea declared they are prohibiting deposits for SNX tokens on their platforms.
Upbit stated that it had implemented a trading caution ticker and suspended token deposits. The exchange indicated it had been tracking developments concerning the Synthetix USD (sUSD) depegging. It further noted that this situation could lead to investor losses due to potential instability, as SNX serves as collateral for sUSD.
The platform also stated that it had identified a lack of use cases for the asset, which could lead to investor losses. Upbit announced it would perform a detailed review to determine whether to delist the asset or restore normal operations for the token.
Bithumb has similarly halted deposits for SNX and included a cautionary label for the token. Nevertheless, the exchange mentioned that this decision could be reconsidered based on internal factors. If the reason for the designation is resolved, Bithumb claimed it would lift the restrictions.
Korbit and Coinone also released investor alerts to warn traders. Both exchanges added cautionary tags to SNX tokens to notify investors who might be interested in trading the token.
Cointelegraph reached out to Synthetix for insights but did not receive a reply by time of publication.
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sUSD faces challenges to regain dollar peg
On April 10, the sUSD stablecoin plummeted to a five-year low of $0.83 after failing to sustain its dollar peg in the first quarter of 2025. With the stablecoin backed by the project’s native asset, Cork Protocol co-founder Rob Schmitt likened the token to Terra USD (UST), which collapsed in 2022. However, Schmitt remarked that sUSD has a “more manageable” debt structure.
On April 18, the stablecoin fell further to $0.68, with SNX dropping by 26% over a 30-day span. A Synthetix representative informed Cointelegraph that their team has short, medium, and long-term strategies to address the risks.
On April 21, Synthetix founder Kain Warwick warned SNX stakers with “the stick” if they didn’t engage in a newly introduced staking mechanism to resolve the sUSD depeg. The executive indicated they may exert additional pressure on stakers if they do not observe sufficient momentum on the newly launched mechanism.
Since the warning, sUSD prices increased by 27%. On April 24, the stablecoin briefly touched $0.87. Nevertheless, the token has still been unsuccessful in regaining its dollar peg.
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