Upbit Halts ZIL Transactions: Essential Guide to the Zilliqa Hard Fork Suspension

SEOUL, South Korea – February 2, 2025 – In a decisive move to ensure network security and user asset safety, the prominent South Korean cryptocurrency exchange Upbit has announced a temporary suspension of all deposit and withdrawal services for Zilliqa (ZIL). This proactive halt, scheduled to commence at 09:00 UTC on February 3, 2025, directly responds to the Zilliqa blockchain’s impending hard fork upgrade. Consequently, traders and investors must understand the precise implications and timeline of this essential maintenance period.

Upbit’s ZIL Transaction Suspension: A Protective Measure

Upbit’s official notification clearly outlines the suspension parameters. The exchange will temporarily disable both deposit and withdrawal functionalities for the Zilliqa (ZIL) token. Importantly, this suspension is a standard procedural safeguard implemented by exchanges globally during significant network events. The primary goal is to prevent potential transaction losses or conflicts that could arise if the exchange’s systems and the upgrading blockchain become temporarily incompatible.

Furthermore, the suspension affects only the movement of ZIL tokens on and off the Upbit platform. Crucially, all other exchange functions for ZIL will remain fully operational. Users can continue to trade ZIL against other cryptocurrencies like Bitcoin (BTC) and Tether (USDT) on Upbit’s spot trading markets throughout the suspension period. This distinction is vital for active traders who wish to manage their positions.

• Services Suspended: ZIL Deposits and Withdrawals.
• Services Active: ZIL Spot Trading, Portfolio Holdings.
• Start Time: 09:00 UTC, February 3, 2025.
• Reason: Zilliqa Network Hard Fork & Upgrade.

Understanding the Zilliqa Network Hard Fork

A hard fork represents a fundamental change to a blockchain’s protocol, creating a permanent divergence from the previous version. Nodes that do not upgrade to the new rules can no longer validate transactions on the updated chain. For the Zilliqa network, this scheduled hard fork aims to introduce critical improvements. These enhancements typically focus on scalability, security, and the implementation of new features that benefit the entire ecosystem.

Historically, major blockchain networks like Ethereum and Bitcoin Cash have undergone similar forks. Exchanges universally adopt a cautious stance during these events. They temporarily pause external transactions to safely reconcile their internal ledgers with the new chain state once the upgrade is complete and stable. This industry-standard practice minimizes technical risk for user funds.

The Critical Role of Exchange Protocol During Upgrades

Blockchain analysts and exchange security experts consistently advocate for this suspension protocol. “When a network undergoes a hard fork, there is a non-zero risk of chain splits or temporary consensus issues,” explains a standard industry whitepaper on exchange security. “By suspending deposits and withdrawals, exchanges like Upbit create a controlled environment. This allows their technical teams to validate the success of the fork, update node software, and ensure seamless resumption of services without exposing user assets to unnecessary risk.”

The resumption timeline for ZIL services on Upbit is not fixed to a specific hour. Instead, it is contingent upon the successful completion and stabilization of the Zilliqa hard fork. Upbit’s announcement explicitly states that services will resume only after the network is deemed stable and the exchange has completed its internal testing. Users should monitor Upbit’s official announcement page for the resumption notice, which will be posted promptly.

Immediate Impact and User Action Guide

For Upbit users holding ZIL, the immediate impact is clear. Any plans to deposit ZIL from an external wallet or withdraw ZIL to a private wallet must be completed before 09:00 UTC on February 3. Transactions initiated after this cutoff may fail, potentially causing funds to be delayed or lost until the suspension lifts. Users should verify transaction completion well in advance of the deadline.

For the broader Zilliqa community and market observers, such exchange announcements serve as a formal marker of a significant network event. They often precede periods of increased volatility as traders position themselves around the upgrade. Data from previous hard forks on other blockchains shows that trading volume can spike in the hours before and after a suspension, even as external transfers are paused.

Conclusion

Upbit’s temporary suspension of ZIL deposits and withdrawals is a standard, security-first response to the Zilliqa network hard fork. This action prioritizes the protection of user assets above all else. While it temporarily restricts the movement of ZIL tokens, it allows trading to continue uninterrupted. Users must heed the deadline and rely on official Upbit communications for updates. Ultimately, this procedural pause facilitates a smoother network upgrade, benefiting the long-term health and functionality of the Zilliqa ecosystem.

FAQs

Q1: Can I still trade ZIL on Upbit during the suspension?
Yes. The suspension applies only to depositing ZIL into your Upbit account and withdrawing ZIL out of it. All spot trading pairs for ZIL (e.g., ZIL/BTC, ZIL/KRW, ZIL/USDT) will remain fully active.

Q2: What happens if I send ZIL to my Upbit deposit address after the suspension starts?
You risk losing those funds. Transactions broadcast to the network after Upbit has disabled its wallet systems may not be credited. It is strongly advised to only send ZIL to Upbit after the exchange officially announces the resumption of deposit services.

Q3: How long will the ZIL deposit and withdrawal suspension last?
Upbit has not announced a specific end time. The duration depends on the successful completion and stabilization of the Zilliqa hard fork, followed by Upbit’s internal testing. The suspension will last for the minimum time required to ensure security.

Q4: Do I need to do anything to my ZIL holdings on Upbit because of the hard fork?
No. For users simply holding ZIL on Upbit, no action is required. The exchange will technically manage the upgrade. Your ZIL balance will remain intact and will automatically exist on the new, upgraded chain after the suspension lifts.

Q5: Will this suspension affect the price of ZIL?
Market prices are influenced by many factors. While a hard fork can cause volatility due to speculation about its technical success, the temporary suspension of transfers on one exchange is a routine operational event and is typically not a primary price driver in isolation.