Upbit Announces Crucial Suspension Of NEO And GAS Services Ahead Of Major Network Hard Fork

SEOUL, South Korea – February 1, 2025 – In a significant operational update, the prominent South Korean cryptocurrency exchange Upbit has announced a temporary suspension of deposit and withdrawal services for the NEO and GAS tokens. This critical measure, effective from 3:00 a.m. UTC on February 2, directly precedes a scheduled major upgrade: the hard fork on the NEO N3 network. Consequently, this proactive step highlights the exchange’s commitment to user asset security during pivotal blockchain events. Furthermore, it underscores the ongoing evolution within the NEO ecosystem, often referred to as “China’s Ethereum.”

Upbit’s Strategic Pause for NEO and GAS Transactions

Upbit, operated by Dunamu Inc., is implementing a precise and temporary halt for two interconnected digital assets: NEO and GAS. The suspension window is a standard yet essential security protocol for exchanges globally. Specifically, it allows the platform’s technical teams to safely manage the transition of user holdings during the network’s consensus change. Moreover, this action prevents potential transaction losses or conflicts that can occur if users send funds during a chain split. The exchange has clearly communicated that trading for NEO and GAS against Korean Won (KRW) and Bitcoin (BTC) pairs will remain operational throughout this period. Therefore, users can still execute buy and sell orders on the platform’s spot markets.

This decision reflects a broader industry practice. For instance, major exchanges like Binance and Coinbase routinely enact similar suspensions for network upgrades. The primary goal is always to ensure a seamless and secure transition for all customer funds. Upbit’s announcement follows a clear timeline, giving users adequate notice to complete any urgent transfers before the deadline. The exchange has also committed to notifying users promptly once deposits and withdrawals resume normally after the network stabilizes post-fork.

Understanding the NEO N3 Network Hard Fork

The core reason for Upbit’s service pause is the impending hard fork on the NEO N3 blockchain. A hard fork represents a permanent divergence from the previous version of a blockchain. Importantly, nodes running the old software will no longer be accepted by the newly upgraded network. The NEO N3 upgrade is a substantial evolution of the platform, aiming to enhance its performance, governance, and developer experience. Key improvements in the N3 iteration include:

Enhanced Throughput: The upgrade seeks to significantly increase the network’s transactions per second (TPS) capacity.
Refined Governance Model: N3 introduces a more decentralized and efficient on-chain governance system.
Improved Developer Tools: The update provides a more robust suite of tools and supports a wider range of programming languages for smart contract development.
Integrated Oracles and Storage: Native oracle and decentralized file storage services are built directly into the protocol.

For token holders, understanding the relationship between NEO and GAS is crucial. NEO functions as the governance token of the network, granting holders voting rights. Conversely, GAS is the utility token used to pay for transaction fees and computational services on the NEO blockchain. The hard fork will affect both assets simultaneously, as they are intrinsic components of the same ecosystem.

Expert Analysis on Exchange Protocol During Upgrades

Industry analysts consistently view such exchange suspensions as a hallmark of responsible custodianship. “When a foundational network like NEO undergoes a consensus-level upgrade, exchanges have a non-negotiable duty to protect user assets,” explains a blockchain infrastructure specialist from a leading fintech research firm. “The temporary suspension of deposits and withdrawals is the safest method. It eliminates the risk of replay attacks or funds being sent to invalid addresses during the chain split. Upbit’s clear, pre-emptive communication aligns with global best practices observed during Ethereum’s Merge or Bitcoin’s Taproot upgrade.”

Data from past events supports this approach. For example, during the Ethereum 2.0 Beacon Chain launch, over 95% of major exchanges enacted similar temporary holds. These measures resulted in zero reported incidents of user fund loss related to the upgrade on those platforms. The timeline for resumption typically depends on network stability. Exchanges will only re-enable services after conducting thorough internal testing to confirm the new chain is operating flawlessly and that their integration is secure.

Immediate Impact and User Action Guide

For Upbit users holding NEO or GAS, the immediate impact is clear and time-bound. All deposit and withdrawal functions for these tokens will become unavailable at the specified time. To ensure a smooth experience, users should consider the following actionable steps:

Complete any planned deposits to Upbit well before the 3:00 a.m. UTC deadline on February 2.
Similarly, finalize any withdrawal requests from the exchange ahead of the suspension.
Monitor official Upbit announcement channels for the confirmation that services have resumed.
Remember that trading activities within the exchange are unaffected, allowing for portfolio rebalancing if desired.

It is also vital for users to be aware of potential phishing attempts. Scammers often exploit news of exchange maintenance to create fake websites and support channels. Users should only trust information coming directly from the official Upbit website and verified social media accounts. The suspension does not affect tokens held in personal, non-custodial wallets like NEON or O3 Wallet. However, users interacting directly with the NEO blockchain from personal wallets should also be aware of the hard fork timing and follow guidance from the NEO Foundation.

Conclusion

Upbit’s temporary suspension of NEO and GAS deposits and withdrawals is a carefully orchestrated security protocol. It directly facilitates the safe execution of the significant NEO N3 network hard fork. This action protects user assets and ensures the exchange’s infrastructure remains synchronized with the upgraded blockchain. For the broader cryptocurrency market, such procedures underscore the maturing operational standards of major exchanges like Upbit. They prioritize security and communication during critical network events. Ultimately, the successful completion of this upgrade aims to strengthen the NEO ecosystem, potentially benefiting NEO and GAS holders through enhanced network capabilities and long-term utility.

FAQs

Q1: Can I still trade NEO and GAS on Upbit during the suspension?
A1: Yes. The suspension applies only to depositing and withdrawing NEO and GAS tokens from the exchange. Trading these tokens on Upbit’s spot markets against KRW and BTC will continue normally.

Q2: How long will the deposit and withdrawal suspension last?
A2: Upbit has not announced a specific end time. The duration typically lasts until the exchange confirms the NEO N3 network is stable and their integration is complete. Users should monitor official Upbit announcements for the resumption notice.

Q3: Are my NEO and GAS tokens safe on Upbit during this time?
A3: Yes. The suspension is a protective measure. Your tokens remain securely held in Upbit’s custody. The action is taken to prevent any technical issues during the blockchain transition, not due to any security breach.

Q4: What should I do if I have NEO or GAS in my own private wallet?
A4: If you hold tokens in a non-custodial wallet (e.g., NEON wallet), you do not need to take action for the hard fork regarding Upbit. However, you should ensure your wallet software is updated to be compatible with the new NEO N3 network after the fork.

Q5: Will this hard fork create a new cryptocurrency?
A5: The NEO N3 upgrade is a planned, consensus-upgrading hard fork for the existing network. It is not intended to create a new competing chain or token. The goal is to upgrade the existing NEO blockchain, and NEO and GAS will continue as the native assets on the new chain.