US cryptocurrency exchange Coinbase has announced that it will temporarily suspend certain token deposits and withdrawals as Ethereum core developers transition the blockchain to Proof of Stake (PoS).
In a blog post on Tuesday, Coinbase chief product officer Armin Rezaiean-Asel said that during the Merge event, the currency exchange will put a “brief pause” on deposits and withdrawals of Ether (ETH) and ERC-20 tokens “as a precaution” to manage to do. the migration. The exchange also warned users against scammers offering ETH2 tokens, saying cryptocurrency users do not need to take any additional steps to receive pledged ETH before the Merger.
“While the Merge should be seamless from a user perspective, this downtime allows us to ensure that our systems have successfully reflected the transition,” said Rezaiean-Asel. “We do not expect any other networks or currencies to be affected and the trading of ETH and ERC-20 tokens through our centralized trading products is not expected to be affected.”
It’s finally happening! This is how we are preparing for the Mergehttps://t.co/AIIUqWcDxm
— Coinbase (@coinbase) August 16, 2022
EthereumProof-of-Stake It’s finally happening! Here’s how we’re preparing for the Merger https://t.co/AIIUqWcDxm — Coinbase (@coinbase) August 16, 2022
The currency exchange likely won’t be alone in announcing precautions or changes in trading activity as the Ethereum merger date nears. Cointelegraph reported on Friday that while there may be “unforeseen circumstances”, the main developers have scheduled a tentative merger date of September 15.
Also read: Institutions Flock to Ethereum for 7 Straight Weeks as a Merger Approach: Report
After the Ethereum network transitions from proof-of-work to proof-of-work, many expect that its power consumption will drop sharply, scalability will improve, and it will be less vulnerable to attacks. However, Cointelegraph reported on Saturday that ETH gas fees will not necessarily decrease and transactions on the network are unlikely to become significantly faster than before.