FTX Pausing Ethereum Deposits And Withdrawals For The Merge
FTX has stated that ETH and ERC-20 token deposits and withdrawals will be halted during the Ethereum Bellatrix upgrade on September 6 and the Merge on September 15.
FTX has a strategy in place for The Merge. In a video, the top cryptocurrency exchange said that it would halt customer deposits and withdrawals of certain tokens during two updates relating to Ethereum’s Proof-of-Stake upgrade.
While The Merge is set for September 15, Ethereum will undergo a preparatory update known as Bellatrix on September 6. FTX stated that it would halt ETH deposit and withdrawal services 30 minutes before each event.
The changes will also impact ERC-20 tokens, which are tokens native to Ethereum blockchains such as AAVE or UNI. However, the exchange’s token spot trading, margin trading, and futures trading services will be unaffected.
FTX further stated that if miners decide to fork Ethereum after The Merge to maintain an Ethereum Proof-of-Work chain functioning, the exchange will reward users with forked ETH tokens based on their ETH balance at the time of the fork snapshot. The company stated that it would explore listing the forked ETH coins at a later date.
Other major cryptocurrency exchanges have taken similar precautions in advance of The Merge. Coinbase announced two weeks ago that it would likewise halt ETH deposits and withdrawals as a “precautionary measure.” Binance is implementing the same strategy as FTX and intends to credit its users with forked ETH if a split occurs.
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