What To Expect From Coinbase And Other Crypto Exchanges During The Ethereum Merger

With the highly anticipated Fusion Ether happens next month – and the blockchain goes from proof of work a proof of stake– the biggest crypto companies are now starting to advertise what looks like the experience for retail investors.

Coinbase will temporarily shut down Ethereum and ERC-20 token deposits and withdrawals during the merger, the exchange announced on Tuesday.

The pause is a precautionary measure, Coinbase said in a blog post, the downtime allowing the exchange to “ensure that the transition has been correctly reflected by our systems”. The “merger” refers to a significant protocol update that will see Ethereum main network combined with the proof-of-stake beacon chain, completing the network’s transition to proof-of-stake.

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“Suspending deposits and withdrawals during an asset upgrade is standard operating procedure,” a Coinbase representative said. Descrambler by email.

Indeed, Coinbase and other crypto exchanges have halted deposits and withdrawals in the past when block chain Networks have undergone major changes. For example, in 2017, Coinbase halted activity pendant the Bitcoin and bitcoin money divider. The exchange did again in 2018 and 2020 when Bitcoin Cash is known from subsequent hard forks.

If you were trading crypto back then, now you know the drill. But if you’re new to crypto, Coinbase’s updates on what to expect can give you some peace of mind.

“We do not expect any other networks or devices to be impacted and do not expect any impact to trading ETH and ERC-20 tokens on our centralized trading products,” the company explained in its detailed comment post. the Ethereum merger affected its customers.

The tokens will still be tradable on Coinbase, meaning customers with existing ETH and ERC-20 assets could still trade for other cryptocurrencies and buy and sell with existing funds during the merger, which is expected to occur. on or around September 15 ou 16.

Coinbase did not provide details on exactly when its deposits and withdrawals will be suspended, but Twitter and state website can provide updates.

“At this time, we do not plan to suspend deposits and withdrawals for a short period of time. We can’t say for sure until the merger begins,” a Coinbase representative said. Descrambler when asked about the length of the break.

While other crypto exchanges will likely follow similar procedures, only Coinbase has so far notified its users. But a Binance representative confirmed Descrambler via email that he also plans to suspend deposits and withdrawals of ETH and ERC-20 tokens and will share more details soon.

Representatives for FTX, Crypto.com and Gemini did not immediately respond to Descramblerrequest for comment.

Why can deposit and withdrawal breaks be important? If prolonged, it could affect the price of Ethereum and the ability of traders to enter and exit positions. While Coinbase said it expects the delay to be brief, it could still make it a bit more difficult for merchants to “buy the rumor, sell the newsat the time of the merger, as analysts expect.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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What To Expect From Coinbase And Other Crypto Exchanges During The Ethereum Merger


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