Coinbase to suspend some operations during Ethereum’s transition to PoS

The cryptocurrency exchange Coinbase will suspend deposits and withdrawals of Ethereum and ERC-20 tokens during the blockchain migration to the Proof-of-Stake (PoS) consensus algorithm.

Ethereum🤝Proof-of-Stake

It’s finally happening! Here’s how we’re getting ready for The Merge👇https://t.co/AIIUqWcDxm

— Coinbase (@coinbase) August 16, 2022

“In Coinbase we view this event [The Merge] as an important step toward broad adoption of the crypto-economy and will support it in various ways that align with our mission to increase economic freedom in the world,” the company said.

The exchange attributed the temporary restrictions to precautionary measures. Armin Rezaiyan-Asel, the company’s product manager, noted that Coinbase does not expect issues with other networks, nor with Ethereum trading.

The platform will provide an update on when operations resume.

“It is important to stay vigilant against fraud, especially ahead of the Merge. We advise no one to send their ETH in an attempt to ‘update to ETH2’, as there is no ETH2 token. Assets will be safe during this period, and no action on your part is required to upgrade,” the company emphasized.

Rezaiyan-Asel advised Coinbase Prime clients to initiate withdrawals and deposits either before the mainnet’s transition to PoS begins or after it completes.

Earlier, developers planned The Merge for the 15-16 September. They moved the timeline forward after the successful migration of the Goerli testnet to the PoS algorithm on August 11. This was seen as the final rehearsal before the activation of the update on the mainnet.

On August 13, the second-largest cryptocurrency by market capitalization surpassed the $2,000 level for the first time since the end of May.

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