Upbit and Bithumb suspend Synthetix token deposits citing sUSD risks
Upbit and Bithumb have suspended deposits for Synthetix (SNX) tokens after the Digital Asset Exchange Alliance (DAXA) flagged them for potential risks. DAXA designated SNX as a cautionary item, prompting exchanges to evaluate its trading status. Upbit added a trading caution ticker and cited concerns over the Synthetix USD (sUSD) depegging, which could lead to investor losses due to SNX's collateral role. Bithumb also blocked SNX deposits but may lift restrictions if issues are resolved. Korbit and Coinone issued investor alerts regarding SNX. The sUSD stablecoin has struggled to maintain its dollar peg, dropping to $0.68, with SNX declining by 26% over 30 days. Synthetix plans to mitigate risks, and founder Kain Warwick warned stakers to engage with a new staking mechanism to address the sUSD depeg. Following this warning, sUSD prices increased but still failed to recover fully.
