Key Takeaways
- Upbit clarified that this review affects the SNX/BTC pair in particular and that the observation period will continue through the end of May
- Following the deposit suspension announcement, the token dipped by another 5%
Two of South Korea’s leading digital asset exchanges, Upbit and Bithumb, have halted deposits of Synthetix’s token, SNX, following the asset’s designation as a trade warning commodity by the Digital Asset eXchange Alliance (DAXA). The suspension stems from concerns about the project’s stablecoin, sUSD, which has struggled to maintain its dollar peg throughout the first quarter of 2025.
The decision to suspend SNX transactions was officially announced by Upbit on April 24, citing the continuing instability in the sUSD price. The exchange noted that the move was based on guidelines outlined in the Enforcement Decree of the Virtual Asset User Protection Act. Specifically, Article 17, Paragraph 1, Subparagraph 5 allows for precautionary measures when investor risk is deemed elevated.
“Despite ongoing monitoring, the value of sUSD remains volatile and has not regained its peg to the U.S. dollar,” Upbit explained in its public notice. “This creates potential for sudden price shifts in SNX, which is used as collateral within the system, thereby increasing user exposure to risk.”
Upbit clarified that this review affects the SNX/BTC pair in particular and that the observation period will continue through the end of May. During this time, the exchange will evaluate whether to lift the trading warning, extend it, or remove support for the token entirely. All deposit attempts for SNX during the review window will be automatically returned.
SNX’s recent volatility is linked closely to the performance of sUSD, which on April 10 hit a five-year low of $0.83 before plunging further to $0.68 on April 18. Market observers have expressed concern about the health of the stablecoin, which is issued using SNX as collateral.
As of now, SNX has lost over a quarter of its value in the past month. Following the deposit suspension announcement, the token dipped by another 5% and is currently trading around $0.6944. Its market capitalization stands at approximately $235 million.
In response to the continued depegging, Synthetix founder Kain Warwick urged the community to adopt a recently introduced staking mechanism intended to help restore sUSD’s dollar parity. He warned that failure to act may force the project to apply additional pressure on token stakers. “We may have to use the stick,” Warwick said, referencing stronger incentives or penalties to encourage participation in the fix.
Upbit concluded its announcement by reaffirming its commitment to investor protection, stating that SNX currently falls short of the criteria required for continued trading support under best practices.
Traders and investors are being advised to watch for further updates on SNX’s status as the review period progresses. Final decisions regarding its future on Upbit and Bithumb will be shared through official exchange channels.
