- Upbit alerts users to a Digital Asset Exchange Association (DAXA) warning on HIFI.
- HIFI’s total supply will increase by 25 million tokens following a governance vote.
- The move could trigger significant price fluctuations, prompting investor caution.
Upbit, South Korea’s leading cryptocurrency exchange, has issued a caution notice for Hifi Finance (HIFI), acting on an alert from the Digital Asset Exchange Association (DAXA) aimed at safeguarding investors. The warning follows a recent governance vote that approved a substantial increase in HIFI’s token supply.
DAXA, the organization that monitors digital assets in South Korea, could take further action, potentially including restricting or even halting trading support for HIFI. Given this regulatory scrutiny and the planned supply increase, Upbit is advising investors to exercise caution due to the likelihood of heightened price volatility.
HIFI Token Supply Set to Jump by 25 Million
The caution notice stems from HIFI’s governance vote, held from March 10 to March 17. It approved the issuance of an additional 25 million HIFI tokens. The new supply will be unlocked over 21 months starting in March 2025. This increase raises the total circulation from 146.25 million to 171.25 million HIFI.
Related: Hifi Finance Price Prediction 2023-2030: Will HIFI Reach $10 Soon?
The decision aligns with HIFI’s transition to version 3 (v3) and extends a contract with the protocol’s developer. While the move supports the platform’s growth, it also raises concerns about market dilution and price instability.
Currently, HIFI has a market cap of $51.5 million, with a 569% surge in trading volume to $54 million in the past day. In addition, the token has a total supply of 141,785, with all in circulation.
Trading Risks and Investor Vigilance
Upbit has assured its users that it is actively monitoring the situation and will provide further updates as they become available. The exchange specifically highlighted the inherent risks associated with a significant increase in token supply and the potential for increased regulatory attention. As a result, Upbit strongly advises traders to proceed with caution when dealing with HIFI.
Related: Hifi Finance ($HIFI): Would $0.3 Be the Altcoin’s Last Defense?
As of this press time, HIFI is trading at $0.3643, a 3.2% rise in the past day. The token has surged 13% in the past week, reducing its price plunge to 23% in the past month.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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