Binance to suspend ETH, ERC-20 deposits and withdrawals during Merge

Binance to suspend ETH, ERC-20 deposits and withdrawals during Merge
Image Credits: Crypto News

Binance, the world’s largest crypto exchange by transaction volume, will be suspending all Ether (ETH) and ERC-20 deposits and withdrawals for stability as the blockchain transitions from proof-of-work (PoW) to proof-of-stake (PoS) this September.

According to their official announcement, the pause will take place during two important upgrades, the Bellatrix consensus layer upgrade on September 6th and the Paris execution layer upgrade on September 15th.

The exchange is also putting forth two different scenarios that are likely to occur during the Merge. The first stipulates that no token is reated, during which time Binance can resume deposits and withdraws on a priority basis, and the second stipulates the possibility that the Ethereum chain splits into two chains leading to a new token being created, in which case Binance will use the ETH ticker for the Ethereum PoS chain.

The exchange will then credit Binance users’ accounts with the forked token from the minority chain at a ratio of 1:1 based on a snapshot of ETH balances that is taken before the Paris execution layer upgrade. The withdrawal and distribution details of the forked token are to be addressed in a separate announcement.

During the Merge, ETH cross and isolated margin borrowing will also be suspended between Sept. 14 and 16, but ETH and ERC-20 spot trading, Trading of USDⓈ-M and COIN-M ETH Futures Contracts, and ETH cross and isolated margin pair will not be affected.

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