On October 2, 2025, the South Korean cryptocurrency exchange Upbit flagged the Boundless (ZKC) token, designating it as an "investment warning" cryptocurrency and suspending its deposit services. This decision, made in conjunction with the Digital Asset Exchange Association, followed an evaluation of the ZKC project. The warning triggered a significant market reaction, causing ZKC's price to plummet by as much as 46% intraday and raising concerns about its liquidity, especially in a key market like South Korea.
Upbit's assessment cited several "deficiencies" in the ZKC project, focusing primarily on issues related to its circulation plan, the transparency of its information disclosure, and the overall rationality of this disclosure. Specifically, the exchange discovered that ZKC's actual circulation volume exceeded its original plan. Upbit reportedly engaged in discussions with the Boundless project team to address these concerns, but the issues remained unresolved at the time of the announcement.
The investment warning status is not a permanent delisting but rather a yellow card indicating serious concerns. Upbit announced that this designation would remain in effect until October 17. During this period, the exchange committed to conducting further reviews of the project. The potential outcome if the issues are not fully resolved is a termination of trading support, which would mean delisting ZKC from the exchange entirely.
The immediate impact on ZKC's price was severe, leading to a significant sell-off. Beyond the initial price drop, the incident underscored the liquidity risks inherent in some low-cap tokens, especially when facing regulatory scrutiny or concerns from major exchanges like Upbit, which handled a substantial portion of ZKC's trading volume in September. The move also reflected the heightened regulatory environment in South Korea, a country known for its strict stance on cryptocurrency compliance.
The flagging of ZKC highlighted the critical importance of transparency and adherence to stated tokenomics for crypto projects, particularly when listed on major exchanges. Exchanges, especially those subject to stringent national regulations, are increasingly scrutinizing aspects like token circulation, disclosure practices, and compliance with anti-money laundering and know-your-customer standards. Failure to meet these expectations can lead to severe consequences for projects and their investors.
this event comes amidst other challenges, including inflationary tokenomics and significant selling pressure following airdrops, which have collectively contributed to a substantial decline in the token's value since its mainnet launch. While the project continues to advance technologically and forge partnerships in areas like Verifiable AI, the Upbit warning represents a serious setback that could affect investor confidence and the token's accessibility, particularly if it ultimately leads to a delisting from the exchange.
