Upbit, a South Korean cryptocurrency exchange, announced a temporary halt of Stratis (STRAX) and Zeta Chain (ZETA) deposits and withdrawals starting August 14 due to network upgrades.
This suspension underscores Upbitโs commitment to asset security and compliance, impacting ZETA and STRAX trading dynamics but leaves broader trading unhindered.
Upbit Freezes ZETA, STRAX for Network Security
Upbit, under Dunamu Inc., announced a halt in ZetaChain (ZETA) and Stratis (STRAX) deposits and withdrawals. The suspension aims to ensure asset security during network upgrades. Trading activities will proceed without interruption during this period.
Involved are Upbitโs leadership, with no direct statements from STRAX or ZETA teams. The suspension will start on August 14 at 23:00. This preventive measure aligns with regulatory standards under South Koreaโs Virtual Asset User Protection Act.
โDeposits and withdrawals of ZetaChain (ZETA) will be temporarily suspended from August 14, 23:00 due to a scheduled network upgrade. Trading will continue as normal. Services will resume after network stability is confirmed.โ โ Upbit, Official Statement, Upbit Exchange
Temporary Suspension: Precaution Amid Network Upgrade
The temporary suspension is precautionary, with no reported financial disruptions for users. Past transactions have shown a temporary plateau in metrics, such as volumes and total value locked, usually normalizing post-event.
Potential financial, regulatory, and technological outcomes appear minimal. Historical patterns indicate suspensions during upgrades lead to temporary shifts in liquidity. Long-term impacts are rare unless unexpected technical issues arise.
February 2025 Upbit Suspension Sets Precedent
Previous Upbit suspensions, like the February 2025 instance, align with standard protocol during network upgrades. These events usually resume smoothly post-upgrade, setting a precedent for the current situation.
Expert insights from Kanalcoin suggest that the suspension follows established patterns. Historically, these actions serve as precautionary measures ensuring compliance and securing user assets during network updates.
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