#Upbit reminds IOST to be cautious#

Upbit, a South Korean cryptocurrency exchange, has issued a cautious reminder to investors about the potential risks associated with IOST's upcoming Layer 2 transition. IOST plans to issue 210 billion new tokens and implement tokenomic reforms, which may cause short-term volatility in the token price. Upbit's warning follows the guidelines of the Digital Asset Exchange Association of Korea (DAXA), which mandates informing users when significant network or tokenomic changes may affect asset stability. While the IOST transition is not a suspension or delisting announcement, DAXA highlights the potential significant impact of the Layer 2 transition on traders. The IOST team plans to use the new tokens to support validator rewards, user incentives, and future ecosystem development, and to enhance transaction processing capacity, increase efficiency, and lower transaction fees by connecting the existing Layer 1 network with the new Layer 2 network. The new tokens will be issued gradually in stages for various purposes, including validator rewards, airdrop events, community incentives, developer funding, governance activities, and team compensation.