The Flow blockchain, linked to NFT projects like NBA Top Shot announced it is looking into a potential security incident affecting the network.
The potential breach raised concerns about the network’s security. Its native token FLOW, has been immediately rocked as fear, uncertainty and doubt (FUD) have overtaken the project’s traders.
Why is Flow token down?
The announcement of the ongoing investigation was made because the Flow Foundation became aware of a potential security incident.
The engineering team is hard at work with network partners to establish effective response strategies.
The exact nature and extent of changes within the Flow network also remain unconfirmed. As a precaution, stakeholders have been advised to monitor updates closely. Once verified, the team is expected to provide further announcements that detail the cause and potential duration of disruptions to the Flow network.
While the investigation is ongoing, speculation has continued.
As of December 27, 2025, Flow (FLOW) is trading at $0.11, down from $0.17, some of the lowest levels the token has ever been. For context, the token was once valued at $42.
Recent trading volume had also surged to $164.12 million, but over the past 90 days, the token has experienced a 69.84% decline, according to CoinMarketCap data.
Why did exchanges pause Flow token deposits and withdrawals?
On Saturday, after the project flagged a potential security incident affecting its mainnet, crypto exchange Upbit issued a cautionary advisory for Flow (FLOW).
According to Upbit, the situation is under review, and there is a possibility for the exchange to take protective measures, including warnings, trading restrictions, or ending support if necessary. Users holding FLOW are urged to be cautious.
Other South Korean exchanges that have taken similar action to Upbit since the Flow episode began include Bithumb, one of South Korea’s largest platforms, which quickly halted FLOW deposits/withdrawals, and Coinone.
Their actions align under Digital Asset eXchange Alliance (DAXA), which also issued a trading risk warning for FLOW. While spot trading remained available on the aforementioned platforms, on-chain transfers were paused to mitigate risks during the investigation.
No major global exchanges reported similar suspensions. The response from South Korean exchanges provides better context on the effect of the price drop. It is important to remember that user balances on the exchanges are reported as safe and unaffected.
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.
