Coinbase to Suspend Deposits and Withdrawals of ETH and ERC-20 Tokens During Ethereum Merger

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Cryptocurrency exchange Coinbase announced that it will temporarily suspend deposits and withdrawals of ETH and ERC-20 tokens during Ethereum's transition to the Proof-of-Stake (PoS) algorithm.

Coinbase Product Manager ArminArmin Rezaiean-Asel explained that this is being done as a precaution during network migration. The exchange also warned users against scammers offering ETH2, stating that there is no need to take additional steps to obtain ETH before the merger.

“Although the merger is expected to be smooth withFrom a user perspective, this downtime will allow us to ensure that the transition is successful on our systems. We do not expect this to impact any other networks, nor the trading of ETH and ERC-20 tokens in our centralized trading products,” Rezaian-Acel said.

Coinbase wallet users with ETH balancesand ERC-20, as well as NFT or DeFi positions on the Ethereum network will experience minimal or no impact from the transition, the announcement said. If the transition is successful, the network will remain operational and users will be able to continue transacting with their cryptocurrency on the main network.

Coinbase previously examined Layer 2 scaling solutions for the Ethereum network and reported on the risks they pose in the short term and the benefits in the long term.