South Korea’s two largest cryptocurrency exchanges, Upbit and Bithumb, have simultaneously placed Taiko (TAIKO) on their delisting watchlists. The move follows a security incident involving the token’s wallet or its distributed ledger, the root cause of which remains unresolved. Both exchanges cited the potential for user harm as the primary reason, stating that a hack or security breach with an unconfirmed origin had occurred on the Taiko network.
Under the exchanges’ investor protection policies, such unresolved security events trigger a formal review. While trading has not been suspended, TAIKO is now in a ‘cautionary’ category, meaning it is actively monitored. If the Taiko project fails to provide a satisfactory explanation and remediation plan within a typical 1–3 month review window, Upbit and Bithumb may proceed with a full delisting—removing all TAIKO trading pairs and potentially freezing withdrawals.
Market experts warn that watchlisted assets often experience heightened short-term volatility and reduced liquidity as traders de-risk. The Taiko development team has not yet issued a public statement addressing the specific incident. The situation underscores a broader trend of exchanges becoming more proactive in flagging tokens with unresolved security vulnerabilities, aligning with strict regulatory guidelines from South Korea’s Financial Services Commission.
For TAIKO holders, upcoming announcements from the exchanges and the Taiko team will be critical. If the root cause is identified and satisfactorily remedied, the watchlist designation could be lifted. Otherwise, a formal delisting becomes highly likely.
