Cryptocurrency News

Ethereum Merge’s Implementation Will Briefly Disrupt ERC-20 and ETH Deposits/Withdrawals

Coinbase has recently made an announcement where it talked about the possible disruption in the deposits and withdrawal services. The cryptocurrency exchange based in the United States has confirmed that the disruption would be caused by Ethereum “Merge” implementation.

Merge Implementation may Impact Token Deposit/Withdrawals

The exchange has made an announcement through its notification channels that as the implementation of the Merge takes place, deposits/withdrawal services may pause briefly.

However, the exchange officials have confirmed that the pause will be implemented not on the entire service. Instead, it will be implemented on the cryptocurrencies that are available through the Ethereum blockchain.

Reason for the Pause

The officials have announced that the services will be paused for particular cryptocurrencies. This will happen because the Ethereum blockchain will undergo a transition from proof-of-work to proof-of-stake consensus.

Cryptocurrencies to be paused

The announcement made by Coinbase on Thursday has confirmed that the deposits and withdrawals for ERC-20 tokens and ETH will be paused briefly.

Armin Rezaiean-Asel, the product manager at Coinbase was the one to break the news to the entire Coinbase community.

Armin confirmed that it is just a precautionary measure they have decided to take when the “Merge” gets implemented. They have done it to avoid any unnecessary issues or losses of funds of the users in particular cryptocurrencies.

Intimation for the Users against Scammers

Armin also advised the users to be very vigilant and attentive so they do not fall prey to scammers.

He stated that there is a possibility that they may get approached by people claiming to be offering ETH2 for free or for a very low price.

This is because as the protocol will be changing, people may perceive that the value of the assets may reset and start from scratch.

The criminals or hackers may resort to such maneuvers in order to run their scams and innocent people. However, it is up to the users not to fall victim to such scamming attempts.

Confirmation by Armin

Carmin confirmed that he is very confident that the new ETH 2.0 implementation and operations will run smoothly. The seamlessness of the protocol is an assurance enough that they do not need to cause any precautionary downtime.

However, it is just their precautionary move to ensure that none of the users or coins are at a loss.

Amid an uncertain environment where the cryptocurrency exchanges have been halting withdrawal services, Coinbase seems to have entered its name into the list.

However, Coinbase’s purpose is quite clear and laid out so it will cause no panic. It is being speculated that the implementation of the Merge may take place on September 15.

 

Leave a Reply

Your email address will not be published.