During the Ethereum Merge, Coinbase will “temporarily suspend” ETH and ERC-20 token deposits and withdrawals.
Coinbase, a U.S.-based cryptocurrency exchange, has declared that when Ethereum’s core developers switch the blockchain to proof-of-stake, or PoS, they will temporarily stop some token deposits and withdrawals.
During the Merge event, the cryptocurrency exchange would “briefly stop” deposits and withdrawals of Ether (ETH) and ERC-20 tokens “as a preventative measure,” according to a blog post by Coinbase product manager Armin Rezaiean-Asel on Tuesday. The exchange also cautioned users from falling for scams providing ETH2 tokens, claiming that cryptocurrency users already have staked ETH prior to the Merge and did not need to do anything further.
Although from the user’s point of view the Merge is anticipated to be smooth, Rezaiean-Asel noted, “This downtime helps us to guarantee that the transfer has been effectively mirrored by our systems.” “We foresee no effect on trading for ETH and ERC-20 tokens across our centralized trading products,” the statement reads. “We do not expect any other networks or currencies to be affected.”
As the date for the Ethereum Merge draws near, it is expected that more cryptocurrency exchanges may announce safety measures or modifications to trading practices. Despite the possibility of “unforeseen events,” core devs projected a potential Merge date of September 15.