Coinbase to ‘Briefly Pause’ ETH and ERC-20 Token Operations During Ethereum Merge

by jmpwes

Coinbase to ‘Briefly Pause’ ETH and ERC-20 Token Operations During Ethereum Merge

The crypto exchange also cautioned customers of scammers providing ETH2 tokens, claiming that users did not need to take any more steps to get staked ETH prior to the Merge. Coinbase, a cryptocurrency exchange based in the United States, has announced that it will temporarily restrict certain token deposits and withdrawals as Ethereum’s core developers switch the blockchain to proof-of-stake or PoS.

Coinbase product manager Armin Rezaiean-Asel stated in a blog post on Tuesday that during the Merge event, the crypto exchange will “briefly suspend” deposits and withdrawals of Ether (ETH) and ERC-20 tokens “as a preventative step” to handle the migration. The exchange also warned users about scammers selling ETH2 tokens, claiming that crypto customers did not need to do anything else to get staked ETH before the Merge. 

“Although the Merge is supposed to be seamless from a user standpoint,” Rezaiean-Asel explained, “this downtime allows us to check that the transfer has been correctly mirrored by our systems.” “We do not anticipate any other networks or currencies being disrupted, and we do not anticipate any impact on trading for ETH and ERC-20 tokens across our centralized trading platforms.”

As the Ethereum Merge date approaches, the crypto exchange will likely not be the only one to announce precautions or modifications in trading activity. Cointelegraph stated on Friday that, despite “unforeseen circumstances,” core developers expected a tentative Merge date of September 15.

Many people believe that if the Ethereum network switches from proof-of-work to proof-of-stake, its energy consumption will plummet, scalability will increase, and it will be less vulnerable to assaults. However, Cointelegraph claimed on Saturday that ETH gas fees might not necessarily decrease, and network transactions may not be considerably faster than before.

Featured Image: Megapixl @Burdun

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