South Korea’s leading cryptocurrency exchange, Upbit, has recently listed UXLINK for trading, coinciding with reports that the Web3 social app experienced a security breach resulting in a significant loss of approximately $11 million.
Recognizing potential investor uncertainty, the exchange has implemented specific safety protocols to assist traders in making well-informed trading decisions.
UXLINK Price Plummets 70% Despite Upbit Listing
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Currently, the value of the UXLINK token has sharply declined, experiencing a drop of almost 70% to a trading price of $0.09404. This decline is primarily attributed to the recent security incident affecting the social media application.
Despite these circumstances, Upbit, the foremost Korean exchange, proceeded with the listing of UXLINK but designated it as a token requiring trading caution. This announcement was officially communicated through a post on X (formerly Twitter), clarifying the rationale behind this special designation.
“Notice of UXLINK Trading Warning Designation. UXLINK (UXLINK/KRW, UXLINK/BTC, UXLINK/USDT) has been marked as an asset of concern by member companies of DAXA,” stated the exchange’s announcement.
As per the announcement, UXLINK will be available for trading against the Korean Won (KRW), Bitcoin (BTC), and Tether’s USDT stablecoin.
The Digital Asset eXchange Association (DAXA) has issued an investment warning for all of these trading pairs, emphasizing potential risks.
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DAXA’s primary objective is to foster healthy growth within the digital asset sector. A core element of this mission is protecting investors by promoting a transparent and reliable trading ecosystem.
Specifically, labeling UXLINK as a potentially risky asset is in accordance with rules established under the Virtual Asset User Protection Act’s Enforcement Decree.
“The deposit service for UXLINK is currently not available. The resumption of deposit services will be announced following established procedures upon designation as a cautionary asset,” Upbit declared in their statement.
Reasons Behind Upbit’s Decision to Label UXLINK as Requiring Caution
Upbit attributed their decision to the recent hacking incident and alleged that the UXLINK token issuer did not adequately disclose pertinent information regarding the asset.
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“These problems suggest serious issues that may lead to losses for users. Therefore, Upbit has decided to classify UXLINK as an investment that requires caution to protect our users,” the exchange communicated.
This designation, which began on September 23rd at 12:00 KST, may remain in effect until approximately October 17, 2025, at 23:59 KST. However, the exact duration is subject to the results of ongoing reviews.
Until further notice, UXLINK deposits will not be credited to accounts. Any deposits that are sent will be returned to the sender.
Meanwhile, UXLINK has stated they are actively working to track down the stolen tokens and are collaborating with other cryptocurrency exchanges.
“A significant portion of the compromised assets has already been successfully frozen, and collaborative efforts with exchanges are proceeding well,” UXLINK confirmed.
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Reports also indicate that the social media platform is receiving assistance from PeckShield, a blockchain analytics firm, to aid in the ongoing investigation and to enhance recovery initiatives.
Furthermore, UXLINK maintains that there is no evidence to suggest that individual user wallets were specifically targeted during the incident. They have announced intentions to provide compensation and fully reimburse all accounts impacted by the security breach.
PeckShield has issued a warning to users advising against interacting with the UXLINK token, as the hacker has obtained the ability to mint new tokens.
Reports suggest that the attacker has already minted two billion UXLINK tokens on the Arbitrum network.
Users are expressing concerns about the increased token supply, which explains the current downward trend in the UXLINK price.