Coinone Flags TWT Amid Extreme Fear: Liquidity Grab Ahead?

• Coinone suspends TWT deposits, places token under investment warning effective 7:00 a.m. UTC December 30.
• Market structure suggests potential liquidity grab as Bitcoin tests $87,328 support.
• Global crypto sentiment at "Extreme Fear" (23/100) creates volatile conditions.
• Technical analysis identifies critical invalidation levels for TWT and broader market.

VADODARA, December 30, 2025 — South Korean exchange Coinone has placed Trust Wallet Token (TWT) under an investment warning, suspending deposits effective immediately. This latest crypto news arrives as Bitcoin tests $87,328 support amid extreme market fear. Market structure suggests this could trigger a liquidity grab across altcoins.

Market Context & Background

Exchange warnings typically precede volatility spikes. South Korea's Financial Services Commission (FSC) maintains strict oversight under the Financial Investment Services and Capital Markets Act. Coinone's action follows similar moves by Upbit and Bithumb targeting tokens with compliance concerns. The timing is critical. Global crypto sentiment sits at "Extreme Fear" (23/100). This creates prime conditions for stop-loss cascades. Recent whale activity shows similar patterns. For context, see related developments: a $228M ETH transfer to Binance and Bitcoin OG depositing $330M ETH both signaled potential liquidity grabs.

What Happened?

Coinone announced the TWT investment warning on December 30, 2025. Deposits suspend at 7:00 a.m. UTC. The exchange cited standard compliance procedures. No specific regulatory violation was detailed. TWT remains tradable. Withdrawals continue. This mirrors actions against other tokens like WEMIX in 2023. Market analysts note the warning often precedes delisting reviews. Volume profile analysis shows TWT trading volume concentrated on Korean exchanges. Coinone represents approximately 15% of TWT's Korean liquidity.

Technical Analysis & Price Action

TWT price action shows immediate reaction. The token broke below its 50-day moving average following the announcement. RSI dipped to 38, indicating bearish momentum. Critical support sits at the $1.20 Fibonacci level (0.618 retracement from November highs). Resistance forms at $1.45. Market structure suggests a Fair Value Gap (FVG) between $1.30 and $1.35 that may fill. Bitcoin correlation remains high at 0.72. Bitcoin tests $87,328 support. A break below $85,000 could trigger altcoin liquidation. Bullish invalidation for TWT: $1.10. Bearish invalidation: $1.50.

By The Numbers

Why It Matters

Institutional impact is limited but notable. Korean exchanges influence regional altcoin liquidity. Retail impact is significant. Korean traders face immediate deposit restrictions. This warning may trigger copycat actions from other exchanges. The broader implication: regulatory scrutiny intensifies during bear markets. Compliance becomes a liquidity risk. Market structure suggests this could create order blocks for opportunistic accumulation. Long-term, it pressures token teams to enhance transparency.

Community Sentiment

Market analysts on X express concern. "Korean exchange warnings often precede wider delisting waves," noted one blockchain analyst. Bulls argue TWT's utility as Trust Wallet's native token provides fundamental support. Bears point to declining active addresses. No official statement from Binance, Trust Wallet's parent company. On-chain data indicates no unusual whale accumulation yet.

Price Prediction / Future Outlook

Bullish Case: TWT holds $1.20 support. Bitcoin reclaims $90,000. Exchange warning resolves without delisting. Token rebounds to fill FVG at $1.35. Market sentiment improves from Extreme Fear. This scenario suggests a 15-20% recovery within two weeks.

Bearish Case: TWT breaks $1.10 invalidation level. Additional exchanges issue warnings. Bitcoin drops below $85,000, triggering altcoin liquidation. TWT tests $0.95 support. This scenario suggests 25-30% downside risk. Market structure indicates high probability of stop-loss triggers below $1.15.

FAQs

What does "investment warning" mean on Coinone?Coinone flags tokens for potential compliance issues. Deposits suspend. Trading continues. Often precedes delisting review.

Can I still withdraw TWT from Coinone?Yes. Withdrawals remain active. Only deposits are suspended.

How does this affect TWT price?Immediate selling pressure likely. Korean liquidity reduces. Long-term depends on resolution.

Will other exchanges follow Coinone?Possible. Upbit and Bithumb monitor regulatory compliance closely during Extreme Fear periods.

What's the worst-case scenario for TWT?Multiple exchange delistings. Price breaks $1.00 psychological support. Liquidity dries up.

Source Note: Market data and factual reporting in this article are sourced from original reports. Commentary and analysis provided by CoinMarketBuzz.