Binance will disable withdrawals and deposits of ERC-20 and ETH tokens during the transition of the blockchain to proof-of-stake in the next month. The world’s biggest exchange with maximum transaction volume declared a step ahead to offer constancy during the upcoming Merge.
Binance to Disable ERC-20 and ETH Withdrawals and Deposits during Merge
The impending upgrade of the Ethereum blockchain is considered to occur on the 15th of September this year. Binance is considered to be the 2nd prominent crypto platform to declare the holdup of the ETH withdrawals and deposits after Coinbase announced so in the current month.
As per the declaration of Binance, the venue is implementing the respective suspensions in the case of a couple of significant upgrades with which assistance would be provided while Ethereum leaves proof-of-work and shifts to the proof-of-stake consensus.
The exchange mentioned that the creation of a unique token can be carried out in the meantime of a hard fork, requiring moves to minimize hazards and guarantee the security of the funds of the consumers which could have an impact due to the price volatility. Firstly, the termination of the withdrawals and deposits in ERC-20 and ETH will be imposed by Binance on 6th September during the upgrade of the consensus layer called Bellatrix.
Binance Proposes Plan for 2 Diverse Scenarios in Terms of The Merge
After that, the Binance will suspend these services on 15th September, when the upgrade of the execution layer named Paris is planned. Binance also brought 2 scenarios to the front that it considers to potentially take place during the approaching Merge. The initial condition is where no unique token is developed, the crypto exchange will preferably resume the withdrawals and deposits of the above-mentioned tokens in that case.
Nonetheless, the 2nd condition proposes the possibility that the Ethereum chain may split into a couple of competing chains and would result in the creation of an exclusive token. In such a situation, the ETH ticker will be utilized by Binance for the PoS chain of Ethereum. Then, the exchange platform will take the forked tokens from the minority chain and credit them to the consumers’ accounts at a 1:1 ratio.
The spot trading of ERC-20 and ETH will have no impact during the impending Merge, whereas the consumers are persuaded to carefully take risk-avoiding measures at the time of price volatility spread across the hard fork scenarios.