Disclaimer: FTX has deleted the origin tweet and updated your blog publish which was the foundation from the initial story. This information has been upgraded according to new official information to verify that FTX will suspend ETH deposits and withdrawals, and never halt the trades around the crypto exchange.
While Ethereum devs guaranteed no downtime throughout the Merge, probably the most anticipated Ethereum upgrades, people from the crypto community made the decision to consider positive measures to guarantee the safety of investor funds. Within this effort, crypto exchange FTX announced to prevent Ether (ETH) transactions on secondary blockchains before the September upgrade concludes.
Right after the announcement, FTX deleted the tweet while Chief executive officer Mike Bankman-Fried clarified that “ETH buying and selling will remain on through Merge.”
Official FTX Tweet (left) confirming the temporary disablement of ETH transfer. Source: Google Cache
The Merge upgrade will permanently transition the Ethereum blockchain from proof-of-work (Bang) to some proof-of-stake (PoS) consensus mechanism — targeted at reducing energy consumption and presenting sharding abilities.
Based on Ethereum developers, the Merge is made to transition to PoS with zero downtime because of the terminal total difficulty (TTD), that will make sure the transition in line with the total mining energy that adopts creating a chain. Regardless of the explanation, FTX made a decision to suspend “deposits and withdrawals before the Merge is completed and systems are stable.”
The deposits and withdrawals suspension for Ethereum on various blockchains continues to be allotted to commence at different occasions but remains susceptible to change according to anticipated complications.
FTX’s official timelines for halting ETH deposits and withdrawals. Source: FTX
FTX also noticed that the crypto exchange isn’t responsible for any losses in situation of huge cost fluctuations, adding that “It is the responsibility to know the implications of the announcement.”
Related: The Merge: 5 Best misconceptions concerning the anticipated Ethereum upgrade
Clarifying among the greatest misconceptions associated with The Merge, Ethereum Foundation clarified the approaching upgrade won’t reduce gas charges. The state statement reads:
“Gas charges really are a product of network demand in accordance with the network’s capacity. The Merge deprecates using proof-of-work, transitioning to proof-of-stake for consensus, but doesn’t considerably change any parameters that directly influence network capacity or throughput.”
Rather, the upgrade aims to purely eliminate the requirement for energy-intensive mining.
