Binance will suspend activities on Ethereum during The Merge – BeinCrypto

While Ethereum’s “The Merge” merger is expected to take place between September 15 and 16, Binance has just made a big announcement in relation to the event. The exchange has announced that it will suspend withdrawals and deposits during the migration period, in order to reduce the risk of volatility.

Tic Tac! Tic Tac! The most important event in the crypto sphere for this year is not far from taking place. After two years of long discussions between developers and miners, or even test trials on the Ethereum ecosystem, the system will finally migrate to the Proof of Stake (PoS) consensus mechanism.

According to the latest information shared by the developers of the project, the migration will take place when Ethereum reaches the value of the Terminal Total Difficulty 587500000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000. Tim Beiko and Vitalik Buterin were much more accurate in predicting The Merge around September 15 or 16, the Terminal Total Difficulty date.

However, several players in the Ethereum ecosystem do not approve of this move towards proof of stake. Threats of a fork or the issuance of a PoW token are increasing, and some of the crypto exchanges say they are open to rebel versions of Ethereum. For its part, Binance wants to mitigate the risks associated with the event.

Two scenarios considered and clear instructions

Faced with the risks of volatility, the largest exchange in the industry has chosen to suspend withdrawals and deposits. He specified in an article from his blog:

“Since a new token may be created during a hard fork, Binance has taken the following measures to reduce trading risks related to price volatility, and to maintain the safety of users’ funds during the hard forks »

Changpeng Zhao (CZ) crypto exchange added, “Binance will suspend deposits and withdrawals for Ethereum tokens (ETH and ERC-20) at approximately 11:00 (UTC) of 2022-09-06 for the update. of the Bellatrix consensus layer and 00:00 (UTC) of 2022-09-15 for the Paris runtime layer update. »

Binance also revealed in its press release the measures that the platform intends to put in place after the event. If The Merge does not result in a fork or any other token, the exchange announces that it will reactivate operations relating to Ethereum tokens and users will be able, without any concern, to continue to carry out transactions with their ETH.

In case The Merge leads to other chains involving new tokens, Binance revealed that the “ETH” Ticker will be kept for the PoS version of Ethereum and that customers pro this version will see their account credited with the amount available before The Merge. Merge.

For those who prefer tokens from the forked version, the exchange has indicated that they can withdraw their tokens without too much difficulty. However, Binance clarified that details regarding the withdrawal process will be provided in a separate announcement.

What about the evolution of the Ethereum price?

While the asset had taken a real breath of fresh air with the imminence of its merger, the return of macroeconomic fears swept away its bullish recovery. After touching $2,055 in mid-August, Ethereum now finds itself stuck between $1,400 and $1,700.

At the time of this article’s layout, the ETH token is trading against $1,682, a slight uptick of 0.32% over the past 24 hours.

However, recent events (Binance and Mastercard partnership and launch of Samsung’s crypto platform in 2023) in the sector could have had a significant impact on the price of Ethereum.

However, linked to a correlation to pro-risk assets on Wall Street, cryptocurrencies are also paying for the lack of optimism for the macro-economy.

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Binance will suspend activities on Ethereum during The Merge – BeinCrypto


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