Upbit and Bithumb Delist Loopring (LRC) After Compliance Failures
Upbit and Bithumb, two of South Korea’s largest cryptocurrency exchanges, have coordinated the delisting of Loopring (LRC), effective 06:00 UTC on March 16, 2025. Upbit immediately suspended LRC deposits while Bithumb will halt trading and both set withdrawal deadlines. The exchanges placed LRC on watchlists after months of monitoring and cited major concerns: inadequate disclosure of material information, weak business sustainability, insufficient progress on remediation and milestone delivery, and transparency shortfalls around governance and treasury. The announcements triggered sharp declines in LRC price and trading volume as panic selling and liquidity fragmentation followed. Loopring — a zkRollup-based Ethereum layer-2 focused on DEXs and payments — was noted to face competition from Arbitrum, Optimism and zkSync and to show low TVL. The delisting reflects stricter South Korean regulatory oversight (FSC/FIU) and exchange due-diligence standards (technical audits, team transparency, token supply accuracy and user protections). Traders holding LRC on the affected platforms are urged to withdraw funds before deadlines to avoid forced conversions or loss of access. Short-term impacts include heightened volatility, reduced on-exchange liquidity and potential migration of LRC liquidity to decentralized or overseas venues. Longer term, the move may accelerate consolidation toward projects with clearer disclosures, active development and stronger compliance, while serving as a precedent for stricter exchange-led monitoring in South Korea.
Bearish
The coordinated delisting by two major South Korean exchanges is a negative catalyst for LRC price and liquidity. Immediate effects are likely to be: 1) sharp sell pressure from on-exchange holders rushing to withdraw, increasing short-term volatility and downward price moves; 2) reduced trading volume and fragmented liquidity as market-makers and retail traders leave the affected platforms; and 3) possible relocation of orderflow to decentralized venues or overseas exchanges, which can widen spreads and reduce on-exchange depth. Regulatory framing (FSC/FIU) and explicit exchange findings about disclosure and project sustainability increase uncertainty and reduce investor confidence, extending the negative sentiment beyond Korea. In the medium term, if Loopring’s team publishes verifiable remediation (detailed audits, audited treasury reports, roadmap proof-of-progress and improved governance), some liquidity and price support could return. Absent credible remediation, LRC faces sustained pressure, delistings by other platforms, and lower market capitalization — a structural bearish outcome. For traders: prioritize withdrawing assets from affected exchanges before deadlines, expect higher-than-normal intraday volatility, consider tight risk management or reduced position size, and watch for official remediation disclosures or relisting signals as catalysts for recovery.