South Korea’s Upbit Issues Warning Against HIFI: Token Tanks 10%
Key Notes
- Upbit issued an investment warning against HIFI, halting all deposits.
- HIFI’s value plunged 11% in the past 24 hours following the warning.
- The token was placed on DAXA’s watchlist over transparency and sustainability concerns
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South Korea’s leading crypto exchange, Upbit, has issued an investment warning against the HIFI token, suspending all deposits for the token. The move triggered an 11% drop in HIFI’s value over the past 24 hours, with its market capitalization shrinking to $41.95 million.
The warning follows the addition of HIFI to the Digital Asset eXchange Association (DAXA) watchlist. It cited lack of transparency in business changes, unclear token distribution plans, and concerns over the project’s sustainability.
Notably, DAXA, comprising South Korea’s five major crypto exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, acts as a self-regulatory body that oversees potential risks in the market.
The watchlist period, from March 28 to April 11, puts HIFI under strict scrutiny, with a possible delisting looming if no improvements are made.
Governance Vote Fuels Market Concerns
The caution notice appears to stem from HIFI’s recent governance vote, which took place between March 10 and March 17. During this period, token holders approved the issuance of an additional 25 million HIFI tokens, expanding the total supply from 146.25 million to 171.25 million.
The new tokens will be gradually released over 21 months, starting in March 2025. The issuance aims to support HIFI’s upgrade to version 3 (v3) and extend its contract with the protocol’s developer. However, it has also raised fears of market dilution.
At the time of writing, HIFI is trading at around $0.2958, marking a 25% decline over the past month. The token has plunged 75% over the last year.
HIFI Price Outlook
On the daily HIFI/USDT chart, the Bollinger Bands (BB) show the price dropping below the lower band, indicating oversold conditions. The downtrend appears strong with the price trading below the 20-day moving average ($0.3313).
Meanwhile, the RSI sits at 32.38, approaching the oversold threshold. This suggests that while the token may experience a short-term bounce, the broader trend remains weak.
Key resistance lies around $0.33 and bullish reversal would require a break above $0.35 to regain momentum. On the other hand, support lies at $0.29, which aligns with the recent low. A breakdown below this level could push HIFI further toward $0.25.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
