FTX Pauses Ethereum Deposits and Withdrawals for Consolidation, Support for Fork Tokens

Important Takeaway

  • FTX will suspend ETH and ERC-20 token deposits and withdrawals for at least 30 minutes during two important Ethereum updates.
  • The Bellatrix update is scheduled for September 6, while the actual integration is expected to take place on September 15.
  • In addition, FTX will assign its users ETH forked tokens if a proof of work forked version of Ethereum appears after the merger.

Users of leading crypto exchange FTX will not be able to withdraw or deposit any ETH or ERC-20 tokens to the platform for at least 30 minutes while the Ethereum network undergoes two major updates this month.

Tracking FTX Coinbase and Binance

FTX has a battle plan to “merge”. Leading Cryptocurrency Trading Platform most dangerous In a video, it will stop customer deposits and withdraw some tokens during two upgrades linked to Ethereum’s Proof-of-Stake upgrade.

Ethereum is set to switch from a Proof of Work consensus mechanism to a Proof-of-Stake, an upgrade known in the crypto community as “merge.” The highly anticipated transition, which takes years to prepare, is expected to reduce ETH token emissions by 90% and blockchain power consumption by 99%.

While the actual merger is scheduled to take place on September 15, Ethereum will undergo a preliminary upgrade called Bellatrix on September 6. FTX has indicated that ETH deposit and withdrawal services will be paused 30 minutes prior to each event. ERC-20 tokens, which stands for native tokens on the Ethereum blockchain such as AAVE or UNI, will also be affected by the measures. However, spot token trading, margin trading and exchange futures trading services will remain unaffected.

FTX also clarified that if miners decide to fork Ethereum to keep the Ethereum Proof-of-Work chain running after the merger, the exchange will add to users the ETH fork based on their ETH balance at the time of the fork snapshot. The company indicated that it will consider whether or not to list the ETH fork at a later date.

Other major crypto exchanges have taken similar steps before the merger. Currency base most dangerous A couple of weeks ago, it would also have temporarily suspended ETH deposits and withdrawals, calling the move a “precaution.” Binance is next Exactly the same plane as FTX, the exchange plans to give its users an ETH fork in the event of a fork.

Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.

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