FTX Suspends ETH Deposit And Withdrawals on Arbitrum, Solana, and BSC

Twitter icon  •  Published 1 год назад  •  Nikolas Sargeant

FTX has announced that it will be halting ETH transactions on secondary blockchains until the merge is concluded in September

The second biggest cryptocurrency exchange by daily volume, FTX, has announced that it will be halting ETH transactions on secondary blockchains until the merge is concluded in September. 

FTX To Halt Money Movements on ETH

The announcement was made via Twitter but has since been deleted and republished on the FTX blog. Ethereum devs have promised that the network will not face any downtime during “The Merge,” but crypto community members have decided to take measures to safeguard investor funds. 

Sam Bankman-Fried tweeted not long after the original announcement from his FTX, stating that “ETH trading will stay on through the Merge.” The suspensions of transactions will not affect the activity of the blockchain but withdrawals on Arbiturum, Solana, and the Binance Smart Chain (BSC). 

What Is The Merge?

The Merge takes place throughout September and permanently transaction the Ethereum blockchain from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism in an attempt to reduce the network's carbon footprint as it introduces shard capabilities.

The Ethereum Foundation has stated that one of the big misconceptions about The Merge is that the upgrade will reduce gas fees (transaction fees), but it won’t.  An official statement for the company reads: "Gas fees are a product of network demand relative to the network's capacity. The Merge deprecates the use of proof-of-work, transitioning to proof-of-stake for consensus, but does not significantly change any parameters that directly influence network capacity or throughput."

Ethereum devs have stated that the Merge is designed to transition to PoS with zero downtime due to the terminal total difficulty (TTD). TDD is intended to ensure the transition based on the full mining power that goes into building a chain. 

FTX recognizes the statement but has chosen to suspend transactions to ensure the safety of customer funds. The deposits and withdrawals suspension for Ethereum on various blockchains will occur at varying times but remains subject to change based on foreseen complications. 

The crypto firm highlighted the fact that the crypto exchange is not responsible for any losses in case of any losses due to price fluctuations, stating that “It is your responsibility to understand the implications of this announcement.”

Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.