South Korea’s DAXA and leading exchange Bithumb added ORB (Orbs) and TEMCO to the list of risky crypto projects. The decision to suspend deposits and delist both digital assets was reached on November 6th and effected a few hours later on the same day.
According to Bithumb, DAXA members had the authority to designate crypto assets as risky projects and terminate trading support to protect investors. DAXA’s decision to lift the ban or discontinue support for both digital assets will be made during the third week of November.
Korean Digital Asset Exchange Association suspends trading for ORB and TEMCO. ⚠️ Is this a sign of regulatory crackdown? 🤔 #Korea #crypto #exchange #regulation #blockchain
— Yearofmemecoin (@yearofmeme) November 6, 2024
South Korea’s DAXA warns investors of TEMCO and ORB tokens
Bithumb cautioned that ORB had become a risky digital asset because its business sustainability and reality were now uncertain. Additionally, the virtual asset’s issuer did not provide a platform where the Orbs community could interact and actively engage.
The exchange also pointed out that TEMCO withheld important information that significantly impacted the value of the digital asset. Both virtual assets were subsequently declared trade risks and delisted by Bithumb in accordance with Article 17, Paragraph 1, Subparagraph 1 of the Enforcement Decree of the Virtual User Protection Act.
The exchange called for investors to pay special attention to both crypto projects to avoid losses. It promised to take the lead in creating a safe and transparent trading environment. Bithumb emphasized its commitment to boosting investor confidence through the continuous and systematic supervision of tradable virtual assets by engaging external experts and foundations.
In a related incident, a wallet associated with crypto VC firm DWF Labs was activated after being dormant for over nine months and transferred 150 million ORBS worth over $3M to the address 0x067 a little over three hours ago. The tokens, which were acquired from the Orbs Treasury in Oct. 2023 at $6.7M, had since shrunk in value by 47.8 % and were yet to be sold or transferred.
Performance of both tokens worsens amid regulatory scrutiny
Although it is common for regulatory alerts to result in sudden negative price changes on crypto tokens, the current scrutiny on ORBS and TEMCO only worsened the tokens’ dismal historical performance. The tokens had not yet experienced significant fluctuations, according to CoinCodex charts, but recent developments suggested a bearish trend.
According to data from CoinCodex, TEMCO had decreased 0.19x against the U.S. Dollar, 0.01x against Ethereum, and 0.01x against Bitcoin since its ICO in December 2018. ORBS also decreased 0.24x against the U.S. Dollar, 0.07x against Ethereum, and 0.03x against Bitcoin since its ICO in May 2018.
Recent data showed that TEMCO lost 30.87% against the U.S. Dollar, 35.63% against Ethereum, and 41.38% against Bitcoin in the last month. ORBS also lost 27.34% against the U.S. Dollar, 32.37% against Ethereum, and 38.42% against Bitcoin within the same period.
The price of TEMCO dropped 8% in the past 24 hours and 11% in the last hour, while ORBS’ price dipped 3% in 24 hours and 8.1% in the last hour.
