By
Chimamanda U. Martha
May 14th, 2024
All deposits and withdrawals will be suspended about half an hour before the Merge starts, but normalcy will return to transactions as soon as the upgrade is completed.
Better safe than sorry they say, and the FTX exchange took that phrase personal by moving to halt all Ethereum (ETH) trades on Arbitrum, Solana, and BSC ahead of the fast-approaching ETH Merge.
The crypto exchange revealed this in a recently-issued service update article. This was despite several confirmations of a smooth transition from ETH developers.
It says that, although normalcy will return to transactions as soon as the upgrade is completed, all deposits and withdrawals will be suspended about half an hour before the Merge starts. That is, by 11:34:47 UTC on September 6, 2022. However, the time is subject to change and depends on whatever complications may be anticipated.
Halting ETH Trades, FTX Exchange Aims to Protect Investor Funds
The move by FTX exchange undoubtedly mirrors the sentiments of several other members of the crypto community in general. Many are enthusiastic and charged in anticipation of the potential impact of the upgrade on the entire crypto industry.
Nonetheless, however, the FTX exchange is not throwing caution to the wind. It looks to want to proactively ensure that investor funds are maximally secured. To that effect, FTX is halting all Ether (ETH) trades across the various blockchains earlier mentioned until the September upgrade ends.
Meanwhile, still unsure of what to expect, FTX also wrote:
“It is your responsibility to understand the implications of the Merge. FTX is not liable for any losses incurred.”
The ETH Merge
The Ethereum Merge is an upgrade on the blockchain that will see it migrate from proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. The upgrade is also expected to usher in some new benefits like improved energy efficiency and faster transactions.
Meanwhile, it is also believed in some quarters that the upgrade will drastically reduce gas fees. However, the Ethereum Foundation has already clarified that, saying it is a misconception. At the time, part of the official statement read:
“The Merge… does not significantly change any parameters that directly influence network capacity or throughput.”
The foundation also reiterated that the primary aim of the transition is to eliminate the high dependency on energy for mining.