Coinone Extends TWT Investment Warning Amid Extreme Market Fear

VADODARA, January 30, 2026 — South Korean cryptocurrency exchange Coinone extended its investment warning designation for Trust Wallet Token (TWT) by one month. This daily crypto analysis reveals a coordinated regulatory squeeze. Market structure suggests deepening compliance pressure across Asian exchanges.

Investigation: Coinone's Extended Warning on Trust Wallet Token

Coinone announced the extension on its official website. The exchange first flagged TWT in December 2025. This move prolongs heightened scrutiny for the asset. According to the exchange's public notice, the warning requires additional disclosures for traders. Coinone maintains one of South Korea's strictest compliance frameworks.

Market analysts interpret this as a liquidity grab. Exchanges often use warnings to manage risk exposure. The extension coincides with broader market stress. Bitcoin plunged to $82,753. This represents a 6.11% drop in 24 hours. The Crypto Fear & Greed Index hit 16/100. That signals Extreme Fear.

Market Context & Historical Precedent

South Korean exchanges frequently employ investment warnings. These act as pre-delisting mechanisms. Historically, such actions trigger volume collapses. For instance, Loopring (LRC) faced similar warnings from Upbit, Bithumb, and Korbit last quarter. Its price subsequently fell 40%.

In contrast, global regulators are tightening oversight. The U.S. Securities and Exchange Commission (SEC) has increased enforcement actions. South Korea's Financial Services Commission (FSC) mirrors this trend. Their official regulatory portal emphasizes investor protection. This creates a synchronized pressure front.

Related developments highlight this pattern:

• Loopring faced investment warnings from multiple South Korean exchanges.
• KOFIA formed a digital strategy team to boost market confidence.
• Cardano announced USDCx integration amid extreme fear.

Technical Architecture & Price Action

TWT's price action shows clear weakness. The token broke below its 200-day moving average. This indicates long-term bearish momentum. Volume profile analysis reveals thin liquidity below $1.20. A Fair Value Gap (FVG) exists between $1.50 and $1.65. This gap acts as immediate resistance.

On-chain data from Etherscan shows declining active addresses. TWT's network growth slowed 15% this month. This correlates with exchange outflows. Market structure suggests a potential gamma squeeze if volatility spikes. The Relative Strength Index (RSI) sits at 28. That signals oversold conditions.

Bitcoin's drop exacerbates altcoin pressure. BTC dominance rose to 52%. This triggers capital rotation from riskier assets. Fibonacci retracement levels place key support at $80,000. A break below invalidates the current bullish structure.

By The Numbers

Why It Matters

Coinone's action reflects institutional risk management. Exchanges preempt regulatory scrutiny by flagging assets. This protects their banking relationships. South Korea's capital controls require strict compliance. Failure triggers operational shutdowns.

, this warning impacts TWT's utility. Trust Wallet integrates with multiple blockchains. Regulatory friction could hinder adoption. Developers may seek alternatives. Historical cycles show similar warnings precede delistings. That destroys liquidity permanently.

Market context indicates a broader trend. Bitcoin's recent drop links to Fed chair speculation. Global liquidity fears amplify exchange actions. Retail investors face mounting pressure. Institutional players rebalance portfolios.

Expert Commentary

"Exchange warnings function as circuit breakers. They cool speculative fervor. Coinone's extension signals persistent compliance concerns. Market participants should monitor on-chain flows for exit liquidity." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed scenarios emerge from current structure.

• Bullish Invalidation Level: $1.65. TWT must reclaim this FVG resistance to negate bearish momentum. A break above suggests warning absorption.
• Bearish Invalidation Level: $1.20. This support must hold to prevent a cascade. A breach targets $0.95 based on volume profile gaps.

The 12-month outlook hinges on regulatory clarity. South Korea's Digital Asset Basic Act implementation in 2026 could reshape rules. Institutional adoption of wallet tokens may offset exchange pressures. However, near-term volatility remains elevated. Market structure suggests consolidation between $1.20 and $1.65.