UPbit, a leading South Korean cryptocurrency exchange, announced that the Digital Asset Exchange Association (DAXA) had removed investment warnings on KAVA and WAVES and resumed deposits for these assets. Earlier, DAXA had issued warnings about KAVA and WAVES after stablecoins linked to them were discovered to be “not normally linked to 1 dollar”. The South Korean exchanges had attached an “investment warning” to these assets, warning their users against investing in them. However, after reviewing the assets, DAXA said the exchanges no longer saw them as a significant risk and that its reasons for designating them as caution items had now been resolved. This means South Korean exchanges can resume deposit services for KAVA and WAVES. Deposits that happened when support for these tokens was suspended would be reflected in users’ accounts.
DAXA is a collective of the top five crypto exchanges in South Korea, including UPbit, Bithumb, Coinone, Korbit, and Gopax. The association was formed after the Terra Luna collapse to prevent a similar recurrence. Since then, the exchanges jointly review digital assets and can delist those that do not meet their standards and designate them with investment warnings.
Price Surge for KAVA and WAVES
Following the news, KAVA and WAVES have risen by double digits, according to CryptoSlate’s data. KAVA is up 13% in the last 24 hours and is trading for $1.21 as of press time. The token has enjoyed a positive run over the past month, rising more than 50%. The run has coincided with the launch of the Kava 13 mainnet and the introduction of GameFi and NFTs to its ecosystem. Meanwhile, WAVES rose 14.7% to $1.88 at the time of writing. Waves Labs had previously said the DAXA designation had negatively affected the token.
Founder of WAVES Reacts to the Removal of Investment Warnings
Speaking on the new warning removal, Waves founder Aleksandr ‘Sasha’ Ivanov thanked the community, adding that “reason has prevailed.”