Cryptocurrency exchange Coinbase said it will temporarily suspend deposits and withdrawals of ETH and ERC-20 tokens during Etherium’s transition to the Proof-of-Stake (PoS) algorithm.
Coinbase product manager Armin Rezaiean-Asel explained that, this is being done as a precaution during the network migration. The exchange also warned users against scammers offering ETH2, stating that no extra steps need to be taken to get ETH before the merger.
“While the merger is expected to be smooth from a user perspective, this downtime will allow us to make sure that the transition successfully affects our systems. We do not expect it to affect any other networks or the trading of ETH and ERC-20 tokens in our centralised trading products,” said Rezaian-Acel.
Coinbase wallet users with ETH and ERC-20 balances as well as NFT or DeFi positions on the Etherium network will experience minimal or no impact from the transition, the announcement said. If the transition is successful, the network will remain up and running and users will be able to continue making transactions with their cryptocurrency on the main network.
Coinbase previously investigated second-tier scaling solutions for the Etherium network and reported on the risks they pose in the short term and the benefits in the long term.
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