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Flow Token Drops Amid Investigation into Potential Security Incident

Flow Token Drops Amid Investigation into Potential Security Incident WikiBit 2025-12-28 09:39

Flow security incident: The Flow Foundation is investigating a potential breach on its mainnet, linked to the NBA Top Shot NFT platform. FLOW token

Flow token price chart.

Trading data underscores the immediate market reaction. As of December 27, 2025, FLOW trades at $0.11, a steep decline from its recent $0.17 level and a far cry from its all-time high of $42. Over the past 90 days, the token has shed 69.84%, with recent volume spiking to $164.12 million, according to CoinMarketCap data. This volatility highlights the sensitivity of blockchain-native tokens to security-related news.

Why Did Exchanges Pause Flow Token Deposits and Withdrawals?

Major South Korean exchanges responded swiftly to the Flow security incident. Upbit issued an advisory on Saturday, reviewing the situation and warning of potential restrictions on FLOW trading or support termination if risks escalate. Bithumb and Coinone followed suit, halting deposits and withdrawals under the Digital Asset eXchange Alliance (DAXA) guidelines.

DAXA, representing South Koreas leading platforms, released a trading risk warning for FLOW. Spot trading continued uninterrupted, but on-chain transfers were suspended to protect users during the probe. Exchange statements confirm user balances are safe and unaffected. No global exchanges like Binance or Coinbase reported similar measures, suggesting the response is regionally concentrated where Flow has notable liquidity.

These actions reflect standard protocol in crypto exchanges following potential network vulnerabilities. By pausing inflows and outflows, platforms minimize exposure to unverified transactions. Industry experts note that such precautions preserve market stability while investigations proceed. For context, Flows architecture supports scalable decentralized applications, making rapid response critical to maintain trust.

Frequently Asked QuestionsWhat Caused the Recent Flow Token Price Drop?

The Flow token price drop stems directly from the Flow security incident announcement. FLOW fell from $0.17 to $0.11 as uncertainty spread, amplified by exchange pauses and FUD among traders. CoinMarketCap data shows a 69.84% decline over 90 days, with volumes surging to $164 million on high fear levels.

Are Flow User Funds Safe During This Security Investigation?

Yes, user funds on affected exchanges remain safe. Platforms like Upbit, Bithumb, and Coinone explicitly state balances are secure and untouched. Spot trading continues, with only deposits and withdrawals paused as a precaution amid the Flow Foundations ongoing probe into the potential incident.

Key Takeaways

  • Potential Flow Security Incident Confirmed Under Review: Flow Foundation and engineers coordinate with partners, no verified breach details yet.
  • FLOW Price Impact Severe: Token at $0.11, down 35% short-term and 69.84% over 90 days per CoinMarketCap, volume at $164 million.
  • Exchange Protections Activated: South Korean platforms halt transfers via DAXA, balances safe—monitor for global updates.

Conclusion

The Flow security incident marks a critical moment for the blockchain powering NBA Top Shot and other NFT ecosystems. With FLOW trading at historic lows amid exchange pauses and investigative efforts, stakeholders await clarity from the Flow Foundation. As the engineering team advances response strategies, this event reinforces the need for robust network safeguards in crypto. Stay informed for official updates and potential recovery paths in the evolving digital asset landscape.

Disclaimer:

The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

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