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South Korea's Crypto Exchange Upbit Issues Warning on Synthetix

South Korea's leading cryptocurrency exchange, Upbit, has recently issued an alert regarding the altcoin Synthetix (SNX).

This designation comes after the Digital Asset eXchange Alliance (DAXA) classified SNX as an “investment alert asset” due to its associated stablecoin, sUSD, failing to maintain a peg to the US dollar.

As a precautionary measure, Upbit will halt all deposits for SNX starting at 15:00 UT on April 24.

The instability surrounding sUSD has heightened worries about potential systemic risks within the Synthetix ecosystem, reflecting in heightened price volatility for the SNX token.

DAXA, a consortium formed to enhance risk assessments among major South Korean cryptocurrency platforms, has put this warning in place to protect investors from high-risk assets.

Upbit has stated that it will continually monitor the situation, considering further actions such as a full delisting if necessary.

In light of these developments, the exchange is advising its users to exercise caution regarding their investments in SNX and related assets.

Investors are encouraged to conduct thorough reviews of their exposures in this tumultuous landscape.

The Synthetix case highlights the ongoing challenges faced by cryptocurrency projects in maintaining stable operations amid market volatility.

As the situation evolves, further updates from Upbit and DAXA will provide clarity on the future of SNX and sUSD.