Key Notes
- Upbit issued an funding warning towards HIFI, halting all deposits.
- HIFI’s worth plunged 11% prior to now 24 hours following the warning.
- The token was positioned on DAXA’s watchlist over transparency and sustainability considerations
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South Korea’s main crypto change, Upbit, has issued an funding warning towards the HIFI token, suspending all deposits for the token. The transfer triggered an 11% drop in HIFI’s worth over the previous 24 hours, with its market capitalization shrinking to $41.95 million.
The warning follows the addition of HIFI to the {Digital} Asset eXchange Affiliation (DAXA) watchlist. It cited lack of transparency in enterprise adjustments, unclear token distribution plans, and considerations over the venture’s sustainability.
Notably, DAXA, comprising South Korea’s 5 main crypto exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, acts as a self-regulatory physique that oversees potential dangers out there.
The watchlist interval, from March 28 to April 11, places HIFI beneath strict scrutiny, with a potential delisting looming if no enhancements are made.
Governance Vote Fuels Market Issues
The warning discover seems to stem from HIFI’s latest governance vote, which occurred between March 10 and March 17. Throughout this era, token holders authorised the issuance of a further 25 million HIFI tokens, increasing the entire provide from 146.25 million to 171.25 million.
The brand new tokens will likely be step by step launched over 21 months, beginning in March 2025. The issuance goals to help HIFI’s improve to model 3 (v3) and prolong its contract with the protocol’s developer. Nevertheless, it has additionally raised fears of market dilution.
On the time of writing, HIFI is buying and selling at round $0.2958, marking a 25% decline over the previous month. The token has plunged 75% over the past yr.
HIFI Worth Outlook
On the every day HIFI/USDT chart, the Bollinger Bands (BB) present the worth dropping beneath the decrease band, indicating oversold situations. The downtrend seems sturdy with the worth buying and selling beneath the 20-day shifting common ($0.3313).
In the meantime, the RSI sits at 32.38, approaching the oversold threshold. This implies that whereas the token might expertise a short-term bounce, the broader development stays weak.
Key resistance lies round $0.33 and bullish reversal would require a break above $0.35 to regain momentum. Alternatively, help lies at $0.29, which aligns with the latest low. A breakdown beneath this stage might push HIFI additional towards $0.25.
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Disclaimer: Coinspeaker is dedicated to offering unbiased and clear reporting. This text goals to ship correct and well timed info however shouldn’t be taken as monetary or funding recommendation. Since market situations can change quickly, we encourage you to confirm info by yourself and seek the advice of with knowledgeable earlier than making any selections primarily based on this content material.
A crypto journalist with over 5 years of expertise within the business, Parth has labored with main media shops within the crypto and finance world, gathering expertise and experience within the area after surviving bear and bull markets through the years. Parth can also be an creator of 4 self-published books.
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