DAXA Removes Investment Warning for Boundless (ZKC): Key Updates and Implications

The Digital Asset eXchange Alliance (DAXA) has officially lifted the investment warning designation on Boundless (ZKC). This warning, initially issued on October 2 due to concerns surrounding the token's circulation plan, has been rescinded after just 15 days. The latest decision signifies a pivotal moment for ZKC, clearing a pathway for its continued participation in domestic cryptocurrency markets.

On October 17, major cryptocurrency exchanges under DAXA announced the decision, accompanied by plans to resume deposit support for ZKC in gradual phases. This move is expected to impact investor confidence and the token's trading activity positively.

Why ZKC Was Flagged: Circulation Plan Concerns

The initial investment warning for ZKC arose from significant shortcomings in its investor protection mechanisms. Specifically, DAXA flagged ZKC for unilaterally altering its token circulation plan without clear, transparent, or reasonable processes. This prompted a temporary designation as an "investment warning item," along with restrictions such as the suspension of deposit support.

The warning underscored the importance of transparent disclosures in the cryptocurrency ecosystem, where trust is essential to maintaining investor confidence.

ZKC’s Proactive Response and Corrective Measures

Following the warning, ZKC took decisive steps to address the concerns raised by DAXA. According to a notice from Upbit, ZKC successfully clarified that changes to its circulation plan were implemented prior to its Token Generation Event (TGE). Despite this clarification, ZKC acknowledged operational weaknesses in its disclosure and communication strategies and committed to comprehensive improvements.

To regain trust and ensure compliance, ZKC presented a series of initiatives, including:

• Strengthened Oversight: A dedicated legal advisory team will now oversee all disclosures related to token circulation plans. This aims to enhance the transparency and integrity of the project’s communications.
• Enhanced Communication Channels: ZKC will focus on improving Korean-language disclosures and building stronger communication channels to actively engage with its community.

Upbit, reflecting the collective stance of DAXA, noted, "The investment warning designation on ZKC has been removed," while also cautioning that "the warning could be reinstated, and trading support potentially withdrawn if the asset does not comply with established best practices in the virtual asset market."

Cautionary Note: Potential Price Volatility

Cryptocurrency exchanges under DAXA have issued warnings to investors about potential price fluctuations in ZKC. These fluctuations may arise due to disparities between domestic and international market conditions for the token. As a result, investors are advised to exercise caution when trading ZKC, especially in light of resuming deposit support and the possibility of abrupt market movements.

Related Developments in the Crypto Space

In addition to the updates on ZKC, Bithumb, one of South Korea’s leading cryptocurrency exchanges, has announced significant changes in its trading support policies. While ZKC’s investment warning was lifted, Bithumb confirmed the termination of trading support for two other assets—Label AI (LBL) and KlaySwap (KSP). This highlights the ongoing volatility and regulatory scrutiny in the cryptocurrency landscape, where projects are often held to account for failing to meet community and regulatory standards.

Staying Informed on Cryptocurrency News

As the cryptocurrency sector continues to evolve, staying informed is more critical than ever. Investors and stakeholders can follow platforms like Block Media for real-time updates on market developments, regulatory changes, and more. Updates are available through Google News and the Block Media Telegram channel.

In conclusion, ZKC’s removal from the investment warning list represents a step forward for the project, thanks to its proactive approach in addressing transparency and operational concerns. However, the continued vigilance of both investors and regulatory alliances like DAXA will remain pivotal in shaping the future of virtual asset markets.