Top crypto news: Coinbase to halt ETH transactions during the Merge

Coinbase, a cryptocurrency exchange, has released guidelines 

in preparation for the highly anticipated Ethereum (ETH) Merge upgrade, which will transition the network to a Proof-of-Stake (PoS) protocol.

Coinbase stated in a blog post published on August 16 that the exchange would temporarily halt all Ethereum withdrawals and deposits until the entire Merge migration, scheduled for around September 15, is completed.

According to the exchange, the action is a precautionary measure to ensure that the asset and other ERC-20 tokens may be traded smoothly after the migration is complete. The exchange stated that, following the transition, Ethereum will provide consumers with a seamless experience.

“As a precautionary step, Coinbase will temporarily halt new ETH and ERC-20 token deposits and withdrawals during the Merge.”

According to the company, “this downtime helps us to check that the move has been properly represented by our systems. We do not anticipate any other networks or currencies being disrupted, and we do not anticipate any effect on trading for ETH and ERC-20 tokens across our centralized trading platforms.”

No impact on other assets

Furthermore, the crypto exchange stated that the halting of transactions will have no effect on any other asset. Coinbase also warned that the odds of fraudsters taking advantage of the Merge are significant and urged caution.

After the Goerli testnet is completed on August 10, the cryptocurrency community anticipates Ethereum to undergo a full transition. The upgrade is the blockchain's final test before transitioning from Proof-of-Work to Proof-of-Stake.

The Merge impact 

The Merge was initially planned for September 19, however, the date was changed in an update released by Ethereum co-founder Vitalik Buterin. As CoinGabbar earlier reported, the revised date was necessary to fix the number of hashes left to mine.

Overall, the Merge is considered as a catalyst for Ethereum's surge, with the asset witnessing increased investor interest. For example, Mike Novogratz, CEO of cryptocurrency investment firm Galaxy Digital, stated that he sees the Ethereum upgrade as a catalyst for capital inflow into the asset.

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