South Korean Exchanges Suspend FLOW Amid Security Concerns

• Three major South Korean exchanges—Upbit, Bithumb, and Coinone—temporarily suspended FLOW deposits and withdrawals on December 27, 2025, citing security issues.
• Market structure suggests this event could trigger a liquidity grab, with FLOW price action showing vulnerability below key Fibonacci support at $0.85.
• The global crypto sentiment index registers "Extreme Fear" at 23/100, while Bitcoin trades at $87,446, down 1.27% in 24 hours.
• Historical patterns indicate similar exchange suspensions have led to short-term volatility but minimal long-term structural damage when resolved promptly.

VADODARA, December 27, 2025 — In a coordinated move that echoes past market disruptions, South Korea's three largest cryptocurrency exchanges—Upbit, Bithumb, and Coinone—have temporarily suspended deposits and withdrawals for the Flow (FLOW) virtual asset. This daily crypto analysis examines the security concerns cited by the exchanges and their implications for market structure. According to official statements, the suspension is precautionary, with no confirmed exploits reported. Market data indicates FLOW trading at $0.82, down 3.5% following the announcement, while broader crypto sentiment remains in "Extreme Fear" territory.

Market Context & Background

This event mirrors historical patterns where exchange-level actions have precipitated short-term liquidity crises. Similar to the 2021 correction triggered by Chinese exchange suspensions, market structure suggests these moves often create Fair Value Gaps (FVGs) that are later filled. The South Korean market, accounting for approximately 8% of global crypto volume, has historically been sensitive to regulatory and security announcements. In 2023, a similar suspension of another altcoin on these exchanges led to a 15% price drop within 24 hours, followed by a recovery once operations resumed. The current global sentiment score of 23/100, as measured by the Crypto Fear & Greed Index, indicates underlying market fragility that amplifies such events. Related developments include recent analyses of market sentiment, such as Pantera Capital's 2026 forecast amid extreme fear and Bitcoin futures showing near-perfect equilibrium at $87.5K.

What Happened?

On December 27, 2025, Upbit, Bithumb, and Coinone issued nearly simultaneous announcements suspending FLOW deposits and withdrawals. According to the exchanges, the decision was based on unidentified security issues, with no specific timeline provided for restoration. FLOW, a blockchain platform focused on NFTs and gaming, has a market capitalization of approximately $850 million. Trading volumes on South Korean exchanges for FLOW averaged $12 million daily prior to the suspension. The exchanges emphasized that existing FLOW holdings remain secure and that trading of FLOW against Korean won (KRW) continues, albeit with reduced liquidity. This move follows a pattern observed in early 2024 when multiple exchanges suspended deposits for tokens involved in smart contract vulnerabilities, as documented by security audits on Ethereum.org.

Technical Analysis & Price Action

FLOW price action reveals critical technical levels. The asset broke below its 50-day moving average at $0.88 last week, and the current price of $0.82 sits just above Fibonacci support at $0.80, derived from the 2024 low-high range. The Relative Strength Index (RSI) stands at 38, indicating neutral-to-oversold conditions. Volume profile analysis shows increased selling pressure on South Korean exchanges, with a 40% spike in volume preceding the suspension. Market structure suggests this event could act as a liquidity grab, targeting stop-loss orders below $0.80. A Bullish Invalidation level is set at $0.75, where historical support from Q2 2024 would fail. A Bearish Invalidation level is $0.95, above which the 200-day moving average and previous resistance would indicate trend reversal.

By The Numbers

Why It Matters

For institutional investors, this suspension highlights ongoing security vulnerabilities in altcoin ecosystems, potentially increasing due diligence costs and delaying ETF approvals for smaller-cap assets. Retail traders face immediate liquidity constraints and potential margin calls if FLOW price breaches key supports. The event the importance of multi-exchange diversification, as concentrated trading on South Korean venues amplifies risk. In the 5-year horizon, repeated security incidents could accelerate regulatory scrutiny in key markets, similar to the SEC's increased oversight following the 2022 Terra collapse. Market structure suggests that without swift resolution, this could trigger a gamma squeeze in FLOW options, exacerbating volatility.

Community Sentiment

Industry observers on X/Twitter have expressed cautious concern. Market analysts note that "coordinated suspensions often precede deeper investigations," while bulls argue that "this is a routine security update, not a fundamental flaw." Sentiment analysis of social media posts indicates a 60% negative bias, with frequent comparisons to past exchange halts that resolved without long-term damage. No direct quotes from specific individuals like Michael Saylor or Cathie Wood are available, but general sentiment aligns with the "Extreme Fear" index reading.

Price Prediction / Future Outlook

Bullish Case: If exchanges resolve security issues within 48 hours and FLOW holds Fibonacci support at $0.80, a rebound to $0.90 is plausible, filling the current FVG. On-chain data indicates accumulation by large wallets during dips, supporting a recovery scenario. Historical patterns from 2023 show similar suspensions led to 20% gains post-resolution.

Bearish Case: If suspensions extend beyond 72 hours or security issues are substantiated, FLOW could break $0.75, targeting next support at $0.70. This would invalidate the bullish structure and potentially trigger a cascade in related gaming tokens. Market structure suggests increased correlation with Bitcoin, which faces its own resistance near $90,000.

FAQs

Why did Upbit, Bithumb, and Coinone suspend FLOW?The exchanges cited unspecified security issues, a precautionary measure common in crypto to prevent potential exploits.

How long will the suspension last?No timeline has been provided; historical precedents suggest resolutions within 24-72 hours for similar events.

Can I still trade FLOW on these exchanges?Yes, trading of FLOW against KRW continues, but deposits and withdrawals are halted, affecting liquidity.

What is the impact on FLOW price?FLOW is down 3.5% to $0.82, with technical support at $0.80; further declines depend on suspension duration.

Are other exchanges affected?As of now, only Upbit, Bithumb, and Coinone have announced suspensions; global exchanges like Binance continue normal operations.

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