Binance Confirms Support for Upcoming Ethereum Merge
Leading crypto exchange Binance announced on August 25 that it plans to support and protect users’ funds regardless of the outcome of the Ethereum merge, which is expected to take place between September 10 and September 20.
In the notice, the exchange outlined a possible scenario in which Ethereum splits into two competing chains, creating a new token. Therefore, it has taken several steps to reduce the trading risks brought about by price volatility and to maintain the safety of user funds during the hard fork. It will suspend deposits and withdrawals for ETH and ERC-20 tokens on September 6 in preparation for the network’s Bellatrix consensus layer upgrade, then again on September 15.
If the chain splits into two competing chains and a new token is created, the “ETH” ticker will be used for the Ethereum Proof-of-Stake (PoS) chain. Binance will then credit to users’ accounts the forked token from the minority chain at a ratio of 1:1, based on the snapshot of ETH balances before the Paris execution layer upgrade on September 15. Withdrawals for the forked token will be supported.
SEE ALSO: Ethereum POW Proponent Chandler Guo Challenged by ETC Cooperative
Binance noted that spot trading for ETH and ERC-20 tokens, trading for ETH cross and isolated margin pairs will not be affected.
The Ethereum merge is thought to be the most significant upgrade event in the crypto industry’s history. It is expected to induce volatility in crypto markets, with some anticipating an ether price move downward.