Synthetix Token Flagged, Leading Upbit and Bithumb to Pause Deposits

South Korea’s largest crypto exchanges, Upbit and Bithumb, have suspended deposits of Synthetix (SNX) tokens following a warning from the Digital Asset Exchange Alliance (DAXA), the country’s self-regulatory body that sets industry standards.

DAXA flagged SNX as a “cautionary asset” due to rising risks tied to the instability of Synthetix USD (sUSD)—a stablecoin collateralised by SNX that has struggled to maintain its dollar peg.

A cautionary classification from DAXA typically prompts exchanges to implement investor safeguards, including labeling assets with warning tags, pausing deposits, or temporarily suspending trading activity to mitigate potential volatility.

Upbit stated it had suspended SNX deposits and applied a cautionary label to the token.

Upbit cited concerns over sUSD’s depegging and SNX’s diminishing use cases, warning that continued instability could expose investors to losses.

It plans to conduct a full review before deciding whether to delist the asset or restore normal trading operations.

Bithumb has taken similar action, halting SNX deposits and flagging the token, while noting that the restrictions could be lifted if underlying concerns are resolved.

Meanwhile, Korbit and Coinone issued investor alerts and also applied cautionary tags to SNX to inform traders of potential risks.

sUSD Fails to Regain Dollar Peg

The sUSD stablecoin plunged to a five-year low of $0.83 on 10 April, intensifying concerns over its ongoing failure to maintain a 1:1 peg with the US dollar.

The decline followed persistent instability throughout Q1 2025 and drew comparisons to TerraUSD (UST) by Cork Protocol co-founder Rob Schmitt, who noted the similarities in collateral structure—both backed by their native tokens—but added that sUSD has a “more manageable” debt framework.

By 18 April, sUSD had fallen further to $0.68, while its collateral token, SNX, dropped 26% over a 30-day period.

In response, a Synthetix spokesperson said that the team is working on a phased approach—spanning short-, medium-, and long-term strategies—to stabilise the system, though specific details remain under wraps.

The situation escalated on 21 April, when Synthetix founder Kain Warwick issued a stern warning to SNX stakers, urging them to adopt a newly introduced staking mechanism designed to help restore the peg.

He hinted at potential pressure tactics if uptake remained sluggish.

The warning appeared to have immediate impact: sUSD rebounded 27%, briefly reaching $0.87 on 24 April, and has since hovered around $0.8771 as of 25 April, according to CoinMarketCap.

While the partial recovery offers a glimmer of hope, sUSD has yet to reclaim full parity with the dollar.

With no concrete roadmap disclosed, the crypto community remains watchful as Synthetix leadership works behind the scenes to address mounting systemic risks.