Cryptocurrency exchange Coinbase has announced that it will temporarily suspend deposits and withdrawals of ETH and ERC-20 tokens during the transition of Ethereum to the Proof-of-Stake (PoS) algorithm.
Coinbase Product Manager Armin Rezaiean-Asel explained that this is being done as a precautionary measure during the network migration. The exchange also warned users against scammers offering ETH2, stating that no additional steps need to be taken to obtain ETH before the merge.
“While the merger is expected to be smooth from a user perspective, this downtime will allow us to ensure that the transition is successfully reflected on our systems. We do not expect this to affect any other networks, nor the trading of ETH and ERC-20 tokens in our centralized trading products,” said Rezayan-Asel.
Coinbase wallet users with ETH and ERC-20 balances, as well as NFT or DeFi positions on the Ethereum network, will experience minimal or no impact at all, the announcement said. With a successful transition, the network will remain operational and users will be able to continue transacting with their cryptocurrency on the main network.
Coinbase has previously explored layer 2 scaling solutions for the Ethereum network and reported on the risks they carry in the short term and the benefits in the long term.
Source: Bits
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