Upbit and Bithumb put IOTX on watchlist after security breach

In a significant development in the Asian cryptocurrency market, South Korean exchanges Upbit and Bithumb have announced the launch of IoTeX ($IOTX) Add the token to the delisting watchlist. This decisive action, announced in Seoul, South Korea, follows confirmation of security incidents involving the IoTeX network or its related infrastructure. As a result, the move highlights the increased regulatory and operational oversight applied to digital assets by major trading platforms. Additionally, it emphasizes that security and transparency within the blockchain ecosystem are critical to maintaining the exchange’s listing status.

IoTeX Delisting Watchlist: Key Announcements

Upbit and Bithumb, two of South Korea’s largest and most influential crypto exchanges, have made separate but combined announcements regarding IoTeX. Specifically, they specified: $IOTX Corresponds to the respective “Investment Alert” or “Delisting Watchlist” category. Bithumb provided clear criteria for this designation, directly tied to confirmed security incidents. According to the exchange’s policy, such incidents include hacks and breaches whose causes are unidentified or unaddressed by the project team. Additionally, the incident must impact the virtual asset itself, the wallets managed by its issuer, or the underlying distributed ledger technology. This policy framework demonstrates a proactive approach to risk management that prioritizes the protection of user assets above all else.

Watchlist status serves as a formal alert to investors. This typically begins a review period during which the project team must address the exchange’s concerns. Failure to provide a satisfactory explanation or redress may lead to complete delisting. Therefore, this process introduces considerable uncertainty. $IOTX Holders of these platforms often cause immediate market instability. By way of background, Korean exchanges have historically maintained strict listing standards, often stricter than global exchanges. This rigor stems from the country’s unique regulatory environment and its focus on investor protection following past market turbulence.

Understand the security incident framework

Exchanges like Upbit and Bithumb employ detailed internal standards to assess the health and security of projects. The reasons for IoTeX’s watchlisting fit the general pattern observed in previous delistings. Security incidents are categorized by their scope and response from the incident team. Delayed, opaque, or ineffective responses usually trigger the most serious exchange actions. For example, the integrity of the distributed ledger, or blockchain itself, is of paramount importance. Compromise here represents a fundamental threat to the viability of the asset.

To clarify the types of incidents, let’s do a quick comparison.

Although the specific details of the IoTeX incident were not fully disclosed in the initial announcement, Bithumb’s statement strongly suggests that it falls into one of these serious categories. The exchange’s reference to “unaddressed causes” indicates that the IoTeX team’s communications and corrective actions did not meet the required standards. This procedural aspect is as important as the incident itself and shows that exchanges are now demanding full accountability and transparency from listed projects.

Expert analysis on currency risk management

Industry analysts say the decision to put them on the watch list has not been taken lightly. The exchange will conduct a thorough technical and operational review before going public. The primary goal is to reduce systemic risk and protect the user base from assets that may become illiquid or worthless. Delisting from major exchanges like Upbit or Bithumb could have a significant impact on a token’s liquidity, accessibility, and overall market perception. Historically, similar actions have resulted in short-term double-digit percentage declines in the prices of the affected assets. However, it also serves an important market hygiene function by weeding out vulnerable projects and encouraging higher security standards across the industry.

The timing of this action is also noteworthy. Global regulators are increasing pressure on exchanges to strengthen their due diligence processes. In particular, South Korea has introduced strict regulations through financial authorities such as the Financial Services Commission (FSC) based on the Travel Rule. Exchanges now face a significant responsibility for listing assets that later result in losses for investors due to preventable issues such as security failures. Therefore, preemptive actions such as watchlisting are strategically necessary for compliant exchanges operating in 2025.

Potential impact on the IoTeX ecosystem

The immediate result of being placed on the watch list is market volatility. trading volume of $IOTX Prices on affected exchanges can fluctuate widely as investors react to the news. Tokens placed on a watchlist typically experience increased selling pressure due to the risk of future delisting. Beyond price trends, the IoTeX project’s reputation is facing serious challenges. The core team will now need to engage transparently with exchanges and the broader community to explain the incident and its mitigations. Their response will be scrutinized by other global exchanges, which may consider similar measures.

Long-term effects depend on several factors.

• Project response: Rebuild trust with fast, technical, and transparent post-mortem analysis from the IoTeX team.
• Exchange verdict: Final decision after review period by Upbit and Bithumb.
• Community support: Whether developers and users will continue to build and use IoTeX networks.
• Regulatory notice: Will financial authorities pay more attention to this case?

For the broader cryptocurrency market, this event reinforces an important lesson. First, listing on an exchange is a conditional privilege, not a permanent right. Second, robust security practices and urgent crisis communication are non-negotiable in blockchain projects. Finally, investors should be aware of the specific policies of the exchange they use. Because these policies directly impact asset risk.

conclusion

IoTeX placement ($IOTX) Upbit and Bithumb’s placement on the delisting watchlist marks a pivotal moment that highlights the critical intersection of security, compliance, and market integrity. The action stems from a confirmed but unspecified security incident and follows established trading protocols designed to protect investors. The coming weeks will determine whether the IoTeX project can adequately address the concerns raised, potentially avoiding a complete delisting. Ultimately, this event serves as a stark reminder to all market participants that operational resilience and transparent communication are paramount to maintaining exchange support and community trust in the evolving landscape of 2025.

FAQ

Q1: What does being on the “Delisting Watch List” mean for IoTeX ($IOTX)?
This means that the exchange is giving the IoTeX team a review period to identify and address critical issues such as security breaches. If you don’t do this enough, you may be permanently deleted. $IOTX Trading pairs from exchanges.

Q2: Can I still trade? $IOTX What about Upbit and Bithumb?
Trading typically continues during the watchlist period. However, exchanges may add warning labels and users should be aware of high volatility and the risk of trading being halted in the event of delisting.

Q3: What kind of security incident causes this action?
Exchanges cite incidents that impact the asset’s blockchain, smart contracts, or official project wallets. The key factor is often an “unaddressed cause,” meaning the project does not adequately explain or fix the problem.

Q4: How does this affect $IOTX Are there any holders on other exchanges?
Although the token remains listed elsewhere, this news could have a negative impact on its global price and reputation. Other exchanges will monitor the situation and may initiate their own reviews.

Q5: What should the IoTeX team do now?
The team must immediately issue detailed and transparent reports on security incidents, outline specific steps taken to resolve the issue, and proactively communicate with all listed exchanges to reassure them of the stability of the network.