Cryptocurrency exchange Binance will suspend deposits and withdrawals of Ether (ETH) and ERC-20 tokens throughout the blockchain’s transition to the proof-of-stake (PoS) Beacon chain in September.
The world’s largest exchange by transaction volume announced the relocate an offer to supply stability throughout the Merge, that is touted to occur in mid-September 2022. Binance becomes the 2nd major exchange to announce the suspension of ETH deposits and withdrawals, following Coinbase earlier in August 2022.
According for an announcement from Binance, the exchange is timing suspensions with two important upgrades which will facilitate Ethereum’s switch from proof-of-work (Bang) to PoS. The exchange noted that the new token might be produced throughout a hard fork, necessitating steps to lessen buying and selling risks and make sure the safety of user funds that could have cost volatility.
Binance will suspend deposits and withdrawals for ETH and ERC-20 tokens on Sept. 6 throughout the Bellatrix consensus layer upgrade and also on Sept. 15, once the Paris execution layer upgrade is scheduled.
The exchange also help with two scenarios it deems prone to occur throughout the Merge. Scenario A views that no new token is produced, which may see Binance reopen deposits and withdraws for ETH and ERC-20 tokens ought to be priority.
The 2nd scenario views, with the potential of the Ethereum chain splitting into two competing chains leading to a different token being produced. Within this potential outcome, Binance uses the ETH ticker for that Ethereum PoS chain.
The exchange will credit Binance users’ accounts using the forked token in the minority chain in a ratio of just one:1. This is with different snapshot of ETH balances prior to the Paris execution layer upgrade scheduled for Sept. 15.
Binance has established that withdrawals for any potential forked token is going to be supported and information on distribution is going to be addressed inside a separate announcement nearer to time.
Related: The Merge: 5 Best misconceptions concerning the anticipated Ethereum upgrade
ETH and ERC-20 place buying and selling won’t be affected throughout the Merge, while users are advised to consider risk measures in times of cost volatility around hard fork situations. Binance may also suspend ETH mix and isolated margin borrowing between Sept. 14 and 16, although it noted that ETH mix and isolated margin pair shouldn’t be affected.
Buying and selling of USDⓈ-M and Gold coin-M ETH Futures Contracts will also be likely to be unaffected but Binance has indicated that could take additional protective measures for example modifying margin tiers like maximum leverage value and maintenance margin.
Ethereum Bang miners can transfer their hash rate towards the Ethereum Classic Binance Pool when the Merge has had place.
