Bithumb XLM Suspension: Critical Network Upgrade Halts Stellar and AQUA Transactions

In a decisive move to ensure network security and future functionality, leading South Korean cryptocurrency exchange Bithumb has announced a temporary suspension of deposit and withdrawal services for Stellar (XLM) and its associated token, AQUA. This proactive measure, scheduled for January 22, 2025, directly supports a significant upcoming upgrade to the Stellar blockchain’s core protocol. Consequently, users must prepare for a brief interruption in moving these specific assets on or off the Bithumb platform.

Bithumb XLM Suspension: A Detailed Timeline and Immediate Impact

Bithumb, a top-five digital asset exchange in South Korea by trading volume, will initiate the service halt precisely at 08:00 UTC on Wednesday, January 22, 2025. The exchange has not specified an exact end time for the suspension, a common practice that allows for flexibility during complex technical integrations. However, historical precedent for similar network upgrades suggests services typically resume within 12 to 24 hours. During this period, users cannot deposit new XLM or AQUA tokens into their Bithumb wallets or withdraw existing holdings to external, non-custodial wallets.

Importantly, trading of XLM and AQUA against other cryptocurrencies like Bitcoin (BTC) or the Korean Won (KRW) will remain fully operational on Bithumb’s order books. This distinction is crucial for traders, as it allows for the continuation of spot market activity and price discovery. The suspension exclusively affects the movement of tokens across the blockchain network boundary. For clarity, here are the key operational statuses during the maintenance window:

• Deposits: Suspended. Transactions sent to Bithumb’s deposit addresses will not be credited.
• Withdrawals: Suspended. Initiation of withdrawals will be disabled in the user interface.
• Spot Trading: Operational. Buy and sell orders can be placed and matched.
• Wallet Balances: Unaffected and secure. Funds remain safely held in custody.

Understanding the Stellar Network Upgrade Driving the Halt

This operational pause is not an isolated exchange decision but a coordinated industry response to a planned, consensus-driven upgrade of the Stellar network. The Stellar Development Foundation (SDF), the non-profit organization overseeing the protocol’s development, periodically implements protocol upgrades to introduce new features, enhance security, and improve efficiency. These upgrades require validators, including exchanges like Bithumb that operate full nodes, to update their software to the latest version.

To prevent funds from being lost or stuck in transit during the validator transition, reputable exchanges universally preemptively suspend deposits and withdrawals. This is a standard security best practice observed by global platforms like Coinbase and Kraken during similar events. The specific upgrade prompting Bithumb’s action, likely dubbed “Protocol 21” or higher, may include enhancements such as improved smart contract capabilities via Soroban or refined fee mechanics. By halting external transfers, Bithumb ensures a clean, safe cutover to the new network rules for all its users’ assets.

Expert Insight on Exchange Protocol Management

“A scheduled suspension for a network upgrade is a hallmark of a responsible and technically competent exchange,” explains a blockchain infrastructure engineer with over a decade of experience in digital asset custody. “It signals that the exchange’s operations team is actively monitoring core protocol changes and prioritizing the absolute safety of user funds over uninterrupted convenience. The alternative—attempting to process transactions during a consensus shift—risks creating irreconcilable ledger states, which is far more disruptive.” This perspective underscores that such announcements, while temporarily inconvenient, are ultimately positive for ecosystem health and user security.

The Role of AQUA in the Stellar Ecosystem

The inclusion of AQUA in this service suspension is particularly noteworthy and highlights its integral role within the Stellar ecosystem. AQUA is the governance and utility token for Aquarius, a leading decentralized automated market maker (AMM) and liquidity protocol built on Stellar. As a Stellar Standard Asset (SSA), AQUA’s transactions are natively processed on the Stellar blockchain. Therefore, any upgrade to the core Stellar protocol inherently affects all SSAs, not just the native XLM token.

This dual suspension demonstrates Bithumb’s comprehensive approach to the upgrade. The exchange is ensuring full compatibility not only with the base layer but also with the vibrant ecosystem of decentralized finance (DeFi) projects built atop it. For AQUA holders, this means the temporary halt is a necessary step to maintain seamless integration between the centralized exchange and Stellar’s decentralized applications post-upgrade.

Historical Context and User Guidance for the Suspension Period

Bithumb has a established history of managing such network events. For instance, the exchange executed similar temporary halts for Cardano (ADA) and Ethereum (ETH) during their respective major network upgrades in previous years. Users should treat this as a routine operational procedure. The most critical guidance is to avoid sending XLM or AQUA deposits to Bithumb addresses once the suspension window begins. Transactions initiated during this time will not be processed by the exchange’s nodes and could be permanently lost, requiring complex recovery processes.

Instead, users planning to move funds should complete all deposits at least several hours before the 08:00 UTC deadline. For those wishing to withdraw, initiating transactions well in advance is equally advisable due to normal blockchain confirmation times. Users can monitor the official Bithumb announcement page or its social media channels for the service restoration notice. Typically, the exchange will publish a follow-up announcement confirming the successful upgrade and the reactivation of deposit and withdrawal services.

Conclusion

The temporary Bithumb XLM suspension, which also encompasses the AQUA token, represents a prudent and standardized security measure. This action facilitates a smooth transition for the upcoming Stellar network protocol upgrade, safeguarding user assets during a critical technical transition. While briefly affecting liquidity movement, the maintenance ensures the long-term stability and enhanced functionality of both XLM and AQUA on the Bithumb platform. This event underscores the mature, safety-first operational protocols employed by major exchanges in the evolving cryptocurrency landscape.

FAQs

Q1: Can I still trade XLM and AQUA on Bithumb during the suspension?
A1: Yes. The suspension only affects deposits and withdrawals. Spot trading for both XLM and AQUA trading pairs will continue uninterrupted on the exchange’s internal order book.

Q2: What happens if I send an XLM deposit after the suspension starts?
A2: Transactions sent to a Bithumb deposit address during the suspension will not be automatically credited. The funds may become stuck or lost. You must wait for the service to resume and then contact Bithumb support, who may initiate a manual recovery process, which can be time-consuming.

Q3: How long will the deposit and withdrawal services be suspended?
A3: Bithumb has not announced a specific end time. Based on similar network upgrades, services are typically restored within 12 to 24 hours after the start time. Users should monitor Bithumb’s official announcements for the completion notice.

Q4: Why is AQUA included in the suspension if the upgrade is for Stellar (XLM)?
A4: AQUA is a token issued on the Stellar blockchain. Any upgrade to the core Stellar protocol affects all transactions on the network, including those of Stellar Standard Assets like AQUA. The suspension ensures full compatibility for the entire ecosystem.

Q5: Are my XLM and AQUA funds safe on Bithumb during this time?
A5: Yes. The suspension is a preventative network control. Your wallet balances remain secure in Bithumb’s custody. The upgrade process itself is designed to enhance network security and performance.