Upbit announced on 13 November that it would temporarily suspend deposits and withdrawals of Osmosis (OSMO) tokens that use the Osmosis native chain. The move follows a network‑wide stall that halted block production on the Osmosis blockchain, preventing the confirmation of inbound and outbound transfers. Trading of OSMO on the exchange’s internal order books remains unaffected, allowing users to buy and sell the asset while the transfer restriction stays in place.

Technical cause of the outage

QuickNode, a blockchain infrastructure provider, reported that the Osmosis chain stopped producing new blocks at height 74,955,152 on 12 November at 22:57 UTC. The provider described the incident as a “Network‑Wide Stall” and said the cause has not yet been identified. When block production ceases, validators cannot add new transactions, leaving pending transfers in limbo until the network resumes normal operation.

Exchange responses across regions

Upbit’s suspension references Article 17, Paragraph 1, Subparagraph A of South Korea’s Virtual Asset User Protection Act, which allows temporary restrictions when a blockchain is non‑functional. South Korean rival Bithumb issued a similar notice on 13 November, halting OSMO deposits and withdrawals but keeping trading open. In the United States, Coinbase reported delayed OSMO transfers on 12 November, noting that purchases, sales and fiat movements were unaffected while the issue was investigated.

Market reaction amid the disruption

Despite the transfer problems, OSMO price rose almost 14 % over a 24‑hour period, trading near $0.03738 on 13 November, according to CoinGecko data. Daily volume reached roughly $8.8 million and market capitalization stayed around $26 million, although the token remained down about 10 % for the week. The price gain reflects market dynamics that can diverge from on‑chain activity, as centralized exchange trades do not require immediate blockchain confirmations.

What to watch next

Upbit has said it will lift the deposit and withdrawal ban once the Osmosis network is confirmed stable. Observers should monitor QuickNode’s investigation updates and any further statements from Osmosis validators regarding the root cause. Parallel developments on other Cosmos‑based chains could also signal broader ecosystem risks.

FAQ

Why can Upbit still trade OSMO if deposits and withdrawals are paused?