A London hard fork on the Ethereum network is planned for block 12,965,000. To mitigate the risks, Binance has announced that it will suspend deposits and withdrawals of ETH and ERC-20 tokens during the update.
The update will take place at approximately 14:55 on August 5 Moscow time. The input and output of cryptoassets to the Ethereum network will be suspended on August 5 at 14:45 and will last until the update is completed. Other exchanges are likely to take similar actions.
Binance representatives write about two possible scenarios. In the first, the most favorable, the update will take place without errors and without separation of networks. As such, no new coins will be created and Binance will be back to work with the Ethereum network as soon as possible.
In a less favorable scenario, the network of the second cryptocurrency may split into two chains, respectively, new coins and tokens will be created. Binance will take ETH from the dominant chain and credit tokens from the less popular chain at a 1: 1 ratio based on the balances on block 12,965,000. Details in this case will be announced in a separate statement.
The update will not affect derivatives and margin trading, trading in futures, options and ETHUP and ETHDOWN tokens. The conversion service and OTC portal will also continue to operate without interruption. But loans in ETH will be unavailable from 11 a.m. Moscow time on August 3 to 14:55 on August 5.
Activating the London hard fork will render some tokens completely useless. We are talking about “gas tokens” built on the mechanism of gas reimbursement.
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