Coinbase, the largest cryptocurrency exchange in the United States, has announced plans to temporarily suspend some token deposits and withdrawals after Ethereum developers implement the Merge that will transition Ethereum from a proof-of-work to a proof-of-stake blockchain.
Coinbase to suspend ETH and ERC-20 deposits during Merge
The product manager at Coinbase, Armin Rezaiean-Asel, has discussed the changes that users should expect during the Ethereum Merge event. The exchange will suspend deposits and withdrawals of Ether and ERC-20 tokens briefly.
According to the executive, this will be “a precautionary measure” to protect users during the migration. Coinbase has further urged users to be vigilant and avoid scammers offering ETH2 tokens. It said that crypto users did not need to take action to receive the staked Ether ahead of the Ethereum Merge.
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Rezaiean-Asel said that while the Merge would be a seamless experience from the user’s perspective, the brief pause of transactions on Coinbase would ensure that the Merge is reflected within its systems.
He also alerted users that it was unlikely that the process would affect other networks and cryptocurrencies. Moreover, he did not expect the Merge to impact the trading for Ether and ERC-20 tokens available on Coinbase.
Changes expected during the Ethereum Merge
Coinbase might not be the only exchange to announce precautions and changes to trading activities during the Merge period and the days leading up to the process. Ethereum developers have anticipated that the Merge will happen on September 15, and these dates will be retained unless there are any “unforeseen circumstances.”
The announcement of the block at which the Merge will be done marks the first time a precise timeline has been provided regarding the process. The Merge is expected to set the pace for notable improvements on the Ethereum network by lowering gas fees and improving speeds. It will also reduce Ethereum’s energy consumption by 99%.
Ethereum as a PoS network is also expected to be less prone to attacks by having better security mechanisms. However, the Ethereum gas fees might not necessarily drop as soon as the Merge is implemented, and the speeds might fail to improve instantly. To achieve the desired level of scalability, Ethereum could conduct more upgrades soon, which other blockchains have been doing.