Flow Foundation Seeks Court Order Against Korean Exchange Decisions
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The Flow Foundation, together with its parent organization Dapper Labs, has taken legal action to halt the delisting of its FLOW token from three prominent South Korean cryptocurrency exchanges. This motion was filed on Monday at the Seoul Central District Court, amidst ongoing discussions about the token’s future in the region.
In December, the Layer-1 blockchain Flow faced a significant hurdle when a security breach allowed for the creation of duplicate assets, circumventing the standard minting process. The incident resulted in an estimated $3.9 million worth of FLOW tokens being duplicated, although the organization confirmed that no user funds were affected and all fraudulent tokens were subsequently destroyed.
This security situation led to a quick response from various exchanges, including major players like Upbit, Bithumb, and Coinone, which announced plans to cease supporting FLOW transactions starting March 16. These decisions sparked concerns over the token’s value and the integrity of the Flow network.
Despite these challenges, the Flow Foundation stated that all major global exchanges have thoroughly evaluated their positions and reinstated full support for FLOW services. They emphasized their dedication to maintaining open access to the token across all markets.
The upcoming court session on March 9 will focus on the Foundation’s request, determining whether the changes made by the Korean exchanges can be reversed. Meanwhile, FLOW continues to be accessible on various significant global exchanges such as Coinbase, Kraken, and Binance, alongside Korbit, which remains operational in Korea.
Since its launch in 2019, Flow has been positioned as a solution for scaling Web3 games and digital collectibles. The Foundation indicated that the ecosystem is thriving, with several major companies such as Disney and the NBA actively developing on the platform.
However, the situation for the FLOW token remains precarious. Although there has been a slight uptick in its price following the announcement of the court motion, it has seen a steep decline of approximately 75% since the December security breach, trading at around $0.043. Moreover, the token has plummeted nearly 99.9% from its peak value of $42 in 2021.
The total value locked in the Flow ecosystem has also diminished, dropping 82% to $21 million since reaching its height in November 2021. Overall, the broader NFT market is currently grappling with a significant decline, losing about 92% of its valuation since mid-2022.
As these developments unfold, the upcoming court ruling could play a crucial role in shaping the future of the FLOW token and its presence in South Korea’s cryptocurrency landscape.
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