Upbit, a South Korean cryptocurrency exchange, has issued a cautionary alert regarding the Internet of Services Token (IOST), as flagged by the Digital Asset eXchange Alliance (DAXA) to protect investors. IOST, a blockchain project focused on decentralized applications, is preparing to transition into a layer-2 blockchain, which will lead to significant changes in its tokenomics and network structure. This transition involves the issuance of 21 billion new IOST tokens, a move typically associated with short-term price fluctuations. Upbit's notice emphasized that the upcoming migration could impact the token's structure and influence market sentiment and value. Close communication between Upbit and the IOST team will be maintained to safeguard assets and keep users informed of developments. DAXA regularly flags digital assets undergoing substantial changes for investor protection. The new IOST tokens are set to facilitate validator rewards and enhance ecosystem development, with a phased release planned. The recent governance vote passed on January 12 supports this transition, aiming to improve transaction handling and reduce fees.

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