Clients of a popular cryptocurrency exchange site in the USA Currency base Receive complete information on any risks associated with the impending Ethereum (ETH) merger. The upcoming Ethereum upgrade was just discussed in the latest Coinbase Cloud blog post.
So what are the potential risks?
The latest report from Coinbase details the technical, operational and financial issues associated with the merger. The research describes an increase in ETH borrowing as investors try to accumulate as much ETH as possible prior to the merger as an indication of financial problems.
The impact of the borrowing frenzy is unknown, but it has already forced the leading decentralized finance (DeFi) lender, Aave (AAVE), to propose a moratorium on ETH borrowing.
Everyone who holds ETH is eligible to earn an equal number of fork tokens if the fork is released when Ethereum changes to Proof of Stake.
Electoral business high
According to the difficulty adjustment, Ethereum will be consolidated in just one day, and interest in ETH has been at its peak during this entire time.
Most of this has been upbeat, but some recent market events are starting to make some investors feel differently. The majority of these transactions were massive electoral transfers to centralized exchanges, raising fears of imminent massive pranks.
The initial treatment of the concern involved transfer 150811 ETH From an anonymous wallet to another anonymous wallet, which eventually turns out to be from OK for example Exchange to Binance.
The deal had a financial value of $259.78 million at the time of its manufacture. This wasn’t a big deal in itself, but the most important transfers to central exchanges would come right after that.
Then, from an anonymous wallet, 29,879 Additional ETH value $51.47 million It has been moved to the OKEx exchange. next one, 119.515 ETH the value $207.6 million It was transferred from an unidentified wallet to the Binance exchange.
In the short term, large transactions carrying huge amounts of ETH on central exchanges show a negative picture of the virtual currency.
Ethereum Merge has been getting a lot of attention lately, but it has also started to look like “buy rumor, sell news.”
What can be expected after the merger?
If this whale build-up continues, and if these big whales sell their shares after the merger, the price of ETH will likely crash. Investors are also hoarding a lot of ETH to take advantage of the ETH airdrops that could result from the hard fork.
However, after the merger is complete, these investors will no longer need to hold their ETH, and many will likely sell it.
Also, it must be remembered that these are the transactions that are monitored by all central exchanges. Some opt for the central approach, as they will likely ditch as well. For such huge trades, central exchanges provide the most liquidity.