Coinbase will suspend ETH and ERC-20 token deposits and withdrawals during Ethereum’s Proof-of-Stake upgrade.
During the Merge update, Coinbase temporarily suspends ETH and ERC-20 token deposits and withdrawals. During Ethereum’s consensus mechanism changeover, consumers will be able to utilise the platform’s trading services, but they will be unable to deposit or withdraw ETH or ERC-20 tokens.
The largest cryptocurrency exchange said in a blog post today that it will “temporarily suspend” ETH and ERC-20 token deposits and withdrawals during Ethereum’s planned September 15 migration to Proof-of-Stake. The conversation suggested that the step was preventive.
Ethereum will abandon its Proof-of-Work consensus method in a widely anticipated event known as “the Merge” in the cryptocurrency ecosystem. Among other advantages, it is expected that the Merge would drastically lower Ethereum’s energy usage and slash the pace of ETH token emission by 90%.
Coinbase noted that the outage would let the exchange guarantee that the update was reflected in its systems without interruption. Users of Coinbase will be notified of the restoration of deposits and withdrawals through the exchange’s status page and official Twitter account. It is anticipated that trading services would remain unaffected.
Since Coinbase Wallet is self-custodied, the exchange noted that Coinbase Wallet customers were unlikely to be affected by the Merge, providing the process was successful. In contrast, Coinbase Commerce clients will be momentarily unable to process new payments.
After the Merge, Coinbase clients’ staked ETH balances will be shown in their ETH wallet rather than under the ETH2 ticker. Staked ETH and unstacked ETH balances will remain distinct; the exchange has said that staked ETH will not be unshakeable until early 2023.
Last week, Ethereum surpassed $2,000 immediately after completing its previous Merge test run and setting a date for the main event. It has subsequently settled at $1,885 as of press time.
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