Major South Korean crypto exchange Upbit has paused deposits for the Synthetix token (SNX), responding to a cautionary alert issued by the Digital Asset Exchange Alliance (DAXA).
In an official announcement, Upbit confirmed that SNX was designated a “trading caution item” by DAXA. Consequently, the exchange enacted a suspension on SNX deposits effective April 24, 2025, at 15:00 KST.
Synthetix operates as a decentralized finance (DeFi) protocol on the Ethereum blockchain. It enables the creation and trading of synthetic assets, called Synths, designed to track the value of real-world assets like currencies, commodities, or stocks.
The core issue cited by Upbit for the deposit suspension stems from Synthetix’s associated stablecoin, sUSD. Concerns were raised about its failure to consistently maintain its intended 1:1 peg with the US dollar.
Following the exchange’s notice, the price of SNX experienced a decline of nearly 5%. The token was observed trading around $0.69, corresponding to a market capitalization of approximately $235 million.
[Price chart for SNX after Upbit suspends deposits, April 24, 2025]
Upbit communicated to users that assets flagged under “trading caution” undergo a review to assess whether continued trading support is warranted. This process could lead to delisting if the underlying issues are not resolved.
“The review period for a trading caution item may be extended,” Upbit stated. “If the reasons for designation are not completely resolved, a decision may be made to terminate trading support.”
The exchange highlighted that while SNX and sUSD are distinct crypto tokens, SNX serves as collateral within the Synthetix ecosystem, directly linking its stability concerns to the sUSD stablecoin.
The suspension notice is expected to remain active until the fifth week of May 2025, after which another review might occur. Persistent problems with SNX or sUSD stability could lead Upbit to permanently cease trading support for the token.
Interestingly, at the time of reporting, the sUSD stablecoin itself showed significant volatility, trading at $0.86. This represents a 9.4% increase on the day but deviates considerably from its $1 target peg. The token saw a 12.7% rise over the past week, contrasted by a 10.6% decline over the preceding month.
Efforts are underway within the Synthetix community to address the instability. On April 21, 2025, Synthetix founder Kain Warwick called upon SNX stakers to participate in stabilizing the sUSD peg. A new initiative, the ‘420 Pool’, was introduced, incentivizing users to lock their sUSD for one year in exchange for SNX rewards.