What triggered the caution advisory from Upbit?
Upbit, a leading cryptocurrency exchange based in Korea, has issued a cautionary advisory concerning the FLOW token. This advisory comes in light of a potential security breach affecting the Flow network, a layer 1 blockchain developed by Dapper Labs. Following this alert, the Flow Foundation is actively investigating the situation, working alongside engineering teams and network partners to resolve the potential security incident.
In an official update, the Flow Foundation confirmed that their dedicated teams are engaged in assessing the issue thoroughly. They emphasized their commitment to providing verified updates as more information becomes available.
What measures might Upbit take to protect its users?
Upbit has stated that it is closely monitoring the evolving situation. Depending on the findings of its review, the exchange might implement protective strategies. These may include issuing alerts to users, placing trading restrictions on the FLOW token, or, if deemed necessary, completely halting support for the token. Users currently holding FLOW are advised to exercise caution amid these developments.
How has the market reacted to the news?
The cautionary advisory has coincided with a notable decline in the price of FLOW. Earlier today, the value of the token dropped significantly from over $0.17 to about $0.10, marking its lowest price level since its initial launch. For context, the FLOW token previously reached a high of approximately $42, highlighting the stark contrast in its valuation.
While FLOW faces these challenges, the broader cryptocurrency market continues to grapple with instability. Bitcoin remains unable to recover its prior peak of $90,000, prompting analysts to maintain a cautious outlook on the market's near-term recovery prospects.