Bithumb, one of the leading cryptocurrency exchanges in South Korea, has made an important announcement that concerns investors. Bithumb, together with the Digital Asset Exchange Joint Working Group (DAXA), has placed ORB (Orbit City) and TEMCO tokens in the "investment alert" category.
DAXA's warning: Risky assets flagged
DAXA is an organization that works to improve the security and strengthen regulation of cryptocurrency markets in South Korea. DAXA’s primary goals are to coordinate exchanges and protect investors from risks. In this context, DAXA member exchanges can mark certain digital assets as risky and terminate trading support when necessary.
Bithumb, in its statement, drew attention to the fact that the ORB token poses a risk to investors. It was stated that the organization that manages ORB inadequately disclosed critical information that could affect the value of the token, and that this situation posed a risk to investors. In addition, the lack of a community for ORB token holders to communicate with created uncertainty about the future of the token. This situation raised concerns about whether ORB would be able to maintain its value in the long term.
Lack of information and trust issues at TEMCO
Another token that received an investment warning was TEMCO. Bithumb stated that the issuer of TEMCO did not properly provide critical information about the project to investors and did not share transparent information with investors. This deficiency raised questions about the sustainability and reliability of TEMCO’s business model. In addition, the fact that project changes were made without justification undermined the trust in the TEMCO token and caused uncertainty among investors.
Warning and suspension of deposits
In line with the new regulations adopted by DAXA and Bithumb, ORB and TEMCO tokens have been marked as investment alerts as of November 6, 2024. As of this date, deposits for both tokens will be suspended. However, the final decision on the duration of the investment alert and whether the tokens will be completely removed from trading is expected to be announced between November 18-22, 2024.
No major changes in the market yet
The investment warning decision for ORB and TEMCO tokens has not caused a major change in market prices as of now. While such warnings usually cause price fluctuations in the cryptocurrency market, no significant price movement has been observed in ORB and TEMCO so far. Nevertheless, it is important for investors to follow these developments and adopt a more cautious and careful approach.