By
Temitope Olatunji
April 29th, 2024
While Coinbase is the first one to declare a pause on any depositary or withdrawal actions, it won’t be the last one.
American cryptocurrency exchange Coinbase has notified its customers of a temporary halt on the withdrawals and deposits of specific ERC-20 and ETH tokens as Ethereum blockchain’s core designers convert the network to a proof-of-stake.
In a post published on Tuesday, Armin Rezaiean-Asel, a product manager at Coinbase disclosed that the integration of the proof-of-stake network will take some time and during this while, the exchange will shortly halt any deposits or withdrawal of Ether (ETH) and ERC-20 tokens as a preventative action and for the smooth handling of the shift. The exchange also alerted its customers of any counterfeit offers of the ETH2 token.
According to Rezaiean-Asel, the integration is supposed to be extremely smooth for a user, but the short halt will enable the developers and the people in charge to make sure that the evolution fits well with the exchange’s systems. The firm also doesn’t expect any other currencies or tokens to be affected by this change, except the ETH and ERC-20 tokens.
While Coinbase is the first one to declare a pause on any depositary or withdrawal actions, it won’t be the last one. As the date for Ethereum integration inches closer, more and more companies are expected to declare a short halt on activities related to its tokens. Core developers have estimated a tentative Merge date of September 15th.
As the date for Ethereum Merge approaches, many institutional investors are amassing Ether-based digital token funds. A recent report showed that the Ether funds had seen seven consecutive weeks of optimistic inflows. According to the report, the inrush achieved $16.3 million in the first week of August, accounting for a total of $159 million in inflows.
The increment in the market is believed to have risen because of more pronounced transparency over events leading up to the Merge. Following the current evolution from proof of work to PoS, several people believe that the amount of energy consumed will reduce greatly, with the network becoming more scalable and less prone to cyber-attacks.