Wednesday, October 5, 2022

Binance Hints at Freezing ETH Deposits & Withdrawals During Ethereum Merge, Cites Security Reasons

World-leading cryptocurrency exchange Binance has pledged support for the upcoming Ethereum Merge. With the upgrade expected to take place through the coming month of September, Binance has advised its users on how “the Merge” may potentially affect some of their usual activities.

Binance issues notice ahead of The Merge

Leaving nothing to chance, Binance plans to halt withdrawals as well as deposits of the ERC-20 tokens during the upgrade. According to the official announcement, the temporary freezing will take place on two different days within the month. First, on September 6, during the Bellatrix consensus layer upgrade. Sometime down the line on September 15, the platform will once again freeze those withdrawals and deposits. That is during the Paris execution layer upgrade. The freezes are likely to happen at 11 AM (UTC), on September 6; and at 12 AM, on September 15, respectively.

Binance claims that the steps are only precautionary and will be taken to mitigate the potential risks of the upgrade. The exchange also fears that the Ethereum Merge may result in the creation of many new tokens. However, Binance also clarifies that if no new tokens are formed during the Merge, then normalcy will immediately return to deposits and withdrawals.

Will other products be affected?

In the forward announcement, Binance insists there’ll be no changes as regards spot trading for ETH and ERC-20 tokens. Similarly, margin trading and ETH Future Trading will also continue as usual. But the exchange admits that it may toggle some parameters. It says this will help to ensure that the level of volatility and risk involved, are carefully considered.

Notably, Binance has been quite vocal about supporting the upcoming Merge in every way possible. But while that may be true, the firm is also open-minded enough to not completely rule out supporting “new forked tokens.”

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