Upbit Issues Investment Warning for HIFI Token, Value Drops 11%
South Korea's Upbit exchange has issued an investment warning for the HIFI token, suspending all deposits. This triggered an 11% decrease in HIFI’s value within 24 hours, reducing its market cap to $41.95 million.
The warning follows HIFI's addition to the Digital Asset eXchange Association (DAXA) watchlist due to:
- Lack of transparency in business changes
- Unclear token distribution plans
- Concerns over project sustainability
DAXA, which includes five major South Korean exchanges, acts as a self-regulatory body monitoring market risks. The watchlist period is from March 28 to April 11, with potential delisting if improvements are not made.
Governance Vote Concerns
The warning is linked to a recent governance vote where holders approved issuing an additional 25 million HIFI tokens, raising total supply from 146.25 million to 171.25 million. This issuance aims to support HIFI's upgrade to version 3 and extend its developer contract but raises market dilution fears.
Currently, HIFI trades at approximately $0.2958, reflecting a 25% decline over the past month and a 75% drop year-over-year.
Price Outlook
The daily HIFI/USDT chart indicates oversold conditions, with the price below the lower Bollinger Band and trading below the 20-day moving average ($0.3313). The RSI is at 32.38, nearing the oversold threshold.
Key resistance is around $0.33; a bullish reversal requires breaking above $0.35. Support is at $0.29, and a fall below this could lead to further declines toward $0.25.