South Korean exchanges Upbit and Bithumb have halted deposits for Synthetix (SNX) tokens after receiving warnings from the Digital Asset Exchange Alliance (DAXA) regarding potential risks. DAXA flagged SNX due to concerns about Synthetix USD (sUSD), a stablecoin backed by SNX, which has struggled to maintain its dollar peg, recently dipping as low as $0.83. Upbit announced a caution ticker and is assessing the asset's viability, citing a lack of use cases that may lead to investor losses. Bithumb has also suspended deposits but noted that restrictions could be lifted based on internal assessments. Additionally, exchanges like Korbit and Coinone issued alerts to traders about SNX. Synthetix's founder indicated ongoing plans to address the sUSD depegging, including incentivizing stakers to participate in a new staking mechanism. In response to market conditions, sUSD briefly rose to $0.87 after the warnings, yet it remains below its intended peg.

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