FLOW Plunges 42% as Flow Network Investigates Possible Security Incident
FLOW token plunged more than 42% to around $0.102, cutting its market capitalization to roughly $165 million after a rapid intraday collapse. HTX market data recorded the sharp drop, which triggered risk warnings from major exchanges. Upbit issued a risk notice while the Digital Asset Exchange Association (DAXA) and member exchanges reviewed supported assets. Flow Network probing a possible security incident prompted heightened exchange monitoring and investor caution. Separately, Sonic Labs confirmed it has paused an earlier governance-approved ETF allocation plan (up to $50 million in $S) and said no ETF tokens were issued; CEO Mitchell Demeter noted the pause lets the team reassess market conditions. Market watchers urged traders to verify official updates, monitor price action, and manage exposure amid increased volatility. Primary keywords: FLOW token, Flow network, security incident, price crash. Secondary/semantic keywords: market cap, exchange risk warning, Upbit, Sonic Labs, ETF allocation, HTX.
Bearish
A >42% intraday collapse in FLOW combined with an active probe into a possible network security incident and exchange risk notices creates immediate selling pressure and elevated uncertainty. Exchanges issuing warnings (Upbit/DAXA) tend to reduce liquidity and increase short-term volatility as traders pull exposure or place sell orders. The paused institutional ETF allocation from Sonic Labs adds a negative institutional sentiment signal because it delays potential buy-side demand. Historically, mid-cap tokens that suffer sudden, security-related sell-offs experience additional downside in the short term as algorithmic traders, margin positions, and retail stop-losses cascade — examples include past protocol exploits or suspected breaches (e.g., certain altcoin incidents in 2020–2022) where prices fell sharply before recovering over months, contingent on incident severity and remediation. Therefore expect heightened intraday volatility and a bearish bias short-term; longer-term impact depends on investigation results, confirmation/clearing of any security issues, and whether institutional flows (like ETF seeding) resume. Traders should reduce leverage, monitor on-chain and official exchange updates, and watch for stabilization signals (resumed buy-side flows, clear security findings) before increasing exposure.