[Analysis] South Korean Exchanges Issue FLOW Investment Warning Amid Extreme Fear Market

• South Korean exchanges Upbit, Bithumb, and Coinone designate FLOW as "investment warning" item
• Decision based on past security incidents and potential user harm
• Market structure shows FLOW trading at $1.42 with immediate support at $1.25
• Global crypto sentiment registers "Extreme Fear" at 24/100

NEW YORK, December 29, 2025 — South Korean cryptocurrency exchanges Upbit, Bithumb, and Coinone have simultaneously designated Flow (FLOW) as an item subject to investment warning. This latest crypto news comes as global market sentiment registers "Extreme Fear" with Bitcoin trading at $90,052. The exchanges cited potential user harm based on guidelines considering past security incidents.

Market Context & Background

South Korea maintains one of the world's most stringent regulatory frameworks for virtual assets. The Financial Services Commission (FSC) requires exchanges to implement "investment warning" designations for assets deemed high-risk. This mirrors actions taken against other tokens following security breaches or regulatory non-compliance. Market structure suggests these designations often precede significant liquidity events as institutional capital repositions.

Related developments include recent analysis of Flow Foundation's response to a $3.9 million hack and Bitcoin's price action amid extreme fear sentiment.

What Happened?

On December 29, 2025, Upbit, Bithumb, and Coinone announced FLOW would be placed under investment warning status. According to exchange statements, the decision followed guidelines for virtual asset trading support that consider past security incidents. The exchanges specifically referenced hacking events as justification. No trading suspension was announced, but the designation requires additional risk disclosures to users.

Technical Analysis & Price Action

FLOW currently trades at $1.42, down 8.3% following the announcement. The 4-hour chart shows a clear Fair Value Gap (FVG) between $1.55 and $1.48. Volume profile indicates weak accumulation below $1.40. The 50-day moving average at $1.65 acts as dynamic resistance. RSI reads 38, suggesting oversold conditions but no divergence.

Bullish Invalidation: A sustained break below $1.25 would invalidate any recovery thesis. This level represents the 0.618 Fibonacci retracement from the November swing low.

Bearish Invalidation: A reclaim of the $1.55 FVG would signal short-covering exhaustion. This coincides with the 20-day exponential moving average.

By The Numbers

Why It Matters

For institutions, this represents another data point in the global regulatory fragmentation narrative. South Korea accounts for approximately 7% of global crypto trading volume according to Chainalysis data. Exchange designations often trigger algorithmic selling from compliance-sensitive funds. For retail, the warning creates psychological resistance at key technical levels. Market structure suggests this could accelerate the ongoing liquidity grab in altcoins as capital rotates toward Bitcoin.

Community Sentiment

Market analysts on X/Twitter note the timing coincides with broader risk-off sentiment. "The Extreme Fear reading at 24/100 suggests maximum pain for altcoin holders," observed one quantitative trader. Another commented, "FLOW's technicals were already weak before this regulatory overhang." No official statement from Flow Foundation has been issued at publication time.

Price Prediction / Future Outlook

Bullish Case: If FLOW holds the $1.25 Fibonacci support and Bitcoin maintains its $90k foothold, a relief rally to $1.65 is plausible. This would represent a 16% move from current levels. On-chain data indicates some accumulation at these levels by long-term holders.

Bearish Case: A break of $1.25 support could trigger a gamma squeeze to the downside. The next significant order block sits at $0.95, representing a 33% decline. This scenario aligns with continued Extreme Fear sentiment and regulatory uncertainty.

FAQs

What does "investment warning" mean in South Korea?Exchanges must provide additional risk disclosures and warnings to users trading designated assets. Trading typically continues but with heightened scrutiny.

Will FLOW be delisted from Korean exchanges?Not necessarily. Warning status often precedes delisting but can remain in place for extended periods if issues are addressed.

How does this affect FLOW trading globally?Korean volume represents approximately 15% of FLOW's global trading. The psychological impact often exceeds direct volume effects.

What were the security incidents referenced?The exchanges likely referred to the $3.9 million hack in October 2025 where Flow Foundation opted against a chain rollback.

How long do investment warnings typically last?Varies by case. Some tokens remain under warning for months while addressing compliance issues; others escalate to delisting within weeks.

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