#Upbit reminds of the risk of IOST transformation#
Hot Topic Overview
Overview
Upbit, a South Korean cryptocurrency exchange, has issued a cautionary notice regarding IOST, reminding investors of the upcoming Layer 2 transition. The transition will involve the issuance of 21 billion new IOST tokens and a significant overhaul of its tokenomics and network structure. Upbit’s warning follows the guidelines set by the Digital Asset Exchange Alliance (DAXA) in South Korea, aimed at protecting investors and alerting users about major network or tokenomics changes that could impact asset stability. While the IOST transition is not a suspension or delisting announcement, DAXA has highlighted the Layer 2 transition due to its potential impact on traders. The IOST team aims to use the new token issuance to support validator rewards, user incentives, and future ecosystem development, and enhance transaction throughput, improve efficiency, and reduce transaction fees by connecting the existing Layer 1 network to the new Layer 2 network.
Ace Hot Topic Analysis
Analysis
Upbit Exchange has issued a cautious advisory regarding IOST's Layer 2 transformation, reminding investors of potential risks. IOST plans to achieve the Layer 2 transformation by issuing 21 billion new tokens and reforming its token economics, a process that could lead to short-term price fluctuations. Upbit's warning follows the guidelines of the Digital Asset Exchange Association of Korea (DAXA), which requires exchanges to notify users of major network or token economic changes that could affect asset stability. While Upbit has not suspended or delisted IOST trading, it expressed concern about the potential impact of the Layer 2 transformation. The IOST team plans to use the new tokens to support validator rewards, user incentives, and future ecosystem development, and to enhance transaction processing capabilities, improve efficiency, and reduce transaction fees by connecting the Layer 1 and Layer 2 networks. The new tokens will be issued gradually in phases for various purposes, including validator rewards, airdrop events, community incentives, developer funding, governance activities, and team compensation.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
IOST's Layer2 transformation may cause short-term fluctuations in token prices.
IOST will issue 21 billion new tokens, which may have a significant impact on token economics.
Upbit and DAXA remind investors of the risks associated with IOST's transformation.
IOST's transformation aims to enhance transaction processing capacity, improve efficiency and reduce transaction fees.