FTX suspends Ethereum deposits and withdrawals for Merge
FTX declared its intention to halt ETH and ERC-20 token deposits and withdrawals on September 6 and September 15 due to the Ethereum Bellatrix upgrade and the Merge.
Users of the top cryptocurrency exchange FTX will be unable to withdraw or deposit ETH or ERC-20 tokens for at least 30 minutes this month, while the Ethereum network undergoes two critical upgrades.
FTX has a strategy for the “Merge” The biggest cryptocurrency exchange said in a video that it will halt deposits and withdrawals of specific tokens during two upgrades associated with Ethereum’s Proof-of-Stake upgrade.
Ethereum will transition from Proof-of-Work to Proof-of-Stake, an upgrade known as the “Merge” in the cryptocurrency world. The change, which has been in the works for years, is estimated to cut ETH token emissions by 90 percent and blockchain energy usage by 99 percent.
While the Merge itself is set on September 15, Ethereum will undergo a preliminary update on September 6 dubbed Bellatrix. FTX said it will suspend ETH deposit and withdrawal services thirty minutes before each event. ERC-20 tokens, or Ethereum blockchain-native tokens such as AAVE or UNI, will also be affected by the measures. However, the exchange’s spot trading, margin trading, and futures trading services would not be impacted.
If miners opt to fork Ethereum to maintain an Ethereum Proof-of-Work chain functioning after the Merge, FTX will award users with forked ETH tokens according to their ETH balance at the time of the fork snapshot. The business stated it will decide at a later date whether or not to offer the split ETH coins.
Prior to the Merge, several large cryptocurrency exchanges had adopted similar measures. Coinbase said two weeks ago that it will suspend ETH deposits and withdrawals, citing precautionary measures. Similar to FTX, Binance intends to compensate its customers with forked ETH in the event of a split.