Binance Will Suspend ETH And ERC-20 Withdrawals And Deposits
Binance will ban ETH and ERC-20 deposits and withdrawals during the Merge In September, while the network switches to its concrete evidence Signal chain (15th or 16 of September according to estimates)
In an effort to provide stability during ‘The Merge,’ which is slated to take place in mid-September 2022, the world’s largest exchange by transaction volume took this action. Binance is the second major exchange to announce the suspension of ETH deposits and withdrawals, followed Coinbase earlier in August 2022.
As stated in a Binance announcement, the trade is coordinating the prohibitions with two major upgrades that will facilitate Ethereum’s shift from proof-of-work (PoW) to proof-of-stake (PoS) (PoS). The exchange noted that a new token could be created during or after a hard fork, necessitating measures to mitigate trading risks and protect user funds that could be damaged by inflationary pressures.
Binance will stop ETH and ERC-20 deposits and withdrawals on September 6 and September 15 due to upgrades to the Bellatrix general agreement layer and the Paris lethal injection layer, respectively.
Additionally, the exchange presented two scenarios that it expects to occur during the Merge. Scenario A presupposes no new coins are introduced; in this situation, Binance would prioritize reopening deposits and withdrawals for ETH and ERC-20 tokens.
The second scenario considers the possibility of the Ethereum chain splitting into two competing chains, leading to the emergence of a new cryptocurrency. In this scenario, Binance may utilize the ETH ticker for the Ethereum PoS chain.
The forked coin from the minority chain will be immediately credited at a 1:1 ratio to the Binance user accounts. This will be based on a snapshot of the ETH balance obtained prior to the scheduled September 15 change to the Paris execution layer.
Withdrawals for a speculative branched cryptocurrency will be permitted, according to Binance, and dispersal details will be addressed in a forthcoming announcement earlier to the time.
Trading in USDS-M and COIN-M ETH Futures Contracts is unlikely to be impacted, although Binance has advised that it may implement additional safeguards, such as modifying margin tiers such as maximum leverage value and maintenance margin.
After the Consolidation, Ethereum PoW miners will have the option to transfer their hashing power to the Ethereum Classic Binance Pool.