- Upbit suspends Stacks transactions following block delay issues.
- STX price dropped 7% post-announcement.
- Spot trading on Upbit remains operational.
The suspension affects exchange liquidity and demonstrates Upbit’s commitment to regulatory compliance. The Stacks network’s delay has yet to elicit public responses from its leadership.
Upbit’s Reaction to Block Delays
Upbit has suspended STX transactions in response to delays in the Stacks network’s block generation. No other tokens on Upbit are reportedly affected by this incident.
The block delay notably impacts STX, which saw a 7% price drop within 24 hours. Upbit cites user protection laws as the reason behind their decision, aligning with South Korea’s regulations.
“Due to the block generation delay experienced on the Stacks (STX) network, deposits and withdrawals of STX assets have been temporarily suspended. This decision was taken in accordance with the relevant provisions of the law on the protection of virtual asset users.” – Upbit, Official Exchange, South Korea
The suspension creates immediate implications for STX holders. Exchange liquidity suffers, causing broader concerns among traders, though no systematic risk is seen for major assets like BTC or ETH.
While Upbit adheres to regulatory frameworks, stakeholders of Stacks eagerly await official communication or technical resolutions. Historical trends show temporary dips typically recover once network stability resumes.
Expectations focus on Stacks to rectify issues swiftly. However, concerns linger over potential prolonged impacts on STX token holders and broader market trust, highlighting the need for timely technical fixes and governance transparency.