Coinbase Pauses ETH Deposits and Withdrawals During Ethereum Merge

Coinbase Pauses ETH Deposits and Withdrawals During Ethereum Merge

Coinbase Pauses ETH Deposits and Withdrawals During Ethereum Merge

Key learning points

  • Coinbase announced today that ETH and ERC-20 token deposits and withdrawals will be briefly paused during the Ethereum merger as a precaution.
  • Trading services are expected to remain unaffected.
  • The Ethereum Merge is tentatively scheduled for September 15.

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Coinbase has announced that it will temporarily pause ETH and ERC-20 token deposits and withdrawals during the Merge upgrade. While clients can use the platform’s trading services during the switchover of Ethereum’s consensus mechanism, they cannot deposit or withdraw ETH or ERC-20 tokens.

A precaution

Coinbase is preparing for the Ethereum merger with great caution.

Leading crypto exchange Coinbase announced in a blog post today that it will “briefly pause” ETH and ERC-20 token deposits and withdrawals during the migration from Ethereum to Proof-of-Stake, which planned on Sept 15. The exchange indicated that the measure was a precautionary measure.

Ethereum will move from its Proof-of-Work consensus mechanism in a highly anticipated event popularly known in the crypto community as the “Merge.” Among other benefits, the Merge is expected to significantly reduce Ethereum’s power consumption and reduce ETH token emissions by 90%.

Coinbase stated that the downtime would allow the exchange to ensure the upgrade was seamlessly mirrored across its systems. Coinbase users are being warned against resuming deposits and withdrawals via the exchange’s status page and official Twitter account. Trading services are expected to remain unaffected.

The exchange indicated that assuming the merger is successful, Coinbase Wallet users are unlikely to be affected by the operation as the wallet is self-managed. Coinbase Commerce customers, on the other hand, will temporarily be unable to process new payments.

After the merge, Coinbase customers will also find their ETH balance wagered in their ETH wallet instead of under the ETH2 ticker. Deployed ETH and unspent ETH balances are still segregated; the exchange stated that staked ETH will not be available for flotation until early 2023.

Ethereum broke the price of $2,000 shortly after successfully complete the last Merge test run on the Goerli testnet last week. Still, Ethereum creator Vitalik Buterin stated: that the Merge hasn’t been “priced in” yet and that the excitement for the upgrade wouldn’t really kick in until after it was completed.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

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