Merge effect: FTX to halt ETH deposit and withdrawals
As the Merge approaches (September, 15th); many exchanges will prevent deposits and withdrawals as the upgrade concludes.
As a reminder, the goal of the merge is to switch from PoW to PoS.
The Merge upgrade will permanently transition the Ethereum blockchain from proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism — aimed at reducing energy consumption and introducing sharding capabilities.
Interestingly, if something goes wrong, you are on your own xD!
FTX also pointed out that the crypto exchange is not liable for any losses in case of large price fluctuations, adding that “It is your responsibility to understand the implications of this announcement.”
Many crypto users and investors more intelligent that I am are NOT expecting fees to drop. They claim fees are dependent on Supply and Demand and the fact to go to an environmentally friendly validatino system does not change much this equation.
Time will tell but the merge is going to be the narrative for the coming weeks and I am glad this should be a positive one!
I also wanted to add that FTX is not stopping deposit of native ETH. FTX is stopping deposits/withdrawals of ETH on secondary chains such as Arbitrum, Solana or Binance Smart Chain.
To be honest, I did not even know they had these options for deposits, I always figured one would use the native token.
We have come a long way to this specific moment
Below, you will see the timeline from the birth of this journey to the current end. Ethereum community worked on this for the past 2 years and I must say, it happened quite fast when you think about all the work that had to be done.
Are you excited yet?
Stay safe out there,
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