Binance Verifies Its Support for Ethereum After Its Merge

Binance Verifies Its Support for Ethereum After Its Merge

August 26, 2022 0 By Jeanine Sanchez

Binance users who have Ethereum in their possession will get an equivalent amount of the token after the Ethereum fork has been concluded. Binance also said it is going to make use of ETH as the ticker for the upcoming PoS Ethereum version. This is how Binance plans to support Ethereum and its users as it prepares for the upgrade along with everyone else.

Binance Throws Its Weight

The world’s number one cryptocurrency exchange said on Thursday that it is planning to fund all its users’ wallets with equivalent tokens from forked Ethereum versions in course of the Merge. The final Merge is now scheduled to take place on the 15th of September.

Binance mentioned a possible case when Ethereum breaks into two chains that compete with one another and it results in a new token. In that situation, Binance says it would keep using the ETH as a representative ticker for the new PoS Ethereum chain. That is what a lot of DeFi protocols and crypto firms have given their support to.

Nevertheless, Binance is also planning to fund users’ wallets with tokens coming from any Ethereum chain that has been forked. Binance says the forked assets from the other smaller chain have a ratio of 1:1. This is gotten from the snapshot of the Ethereum balance just before the upgrade of the Paris layer.

A Hold on ETH Activities Later On

Binance went ahead to state its support for any withdrawal of all possible Ethereum variations. But the forked asset will have to go through an equal listing investigative procedure set by Binance for every other asset it lists.

It was in that announcement that Binance said it would put a hold on all deposits and withdrawals of ERC-20 and ETH assets on the 6th of September. This is for it to prepare for Ethereum’s upgrade of its Bellatrix layer. It will also put the suspension in place on the 15th of September when the final Merge is scheduled for.

Some crypto exchanges, like Coinbase, have announced that they will do likewise to prevent the loss of users’ funds while the upgrade continues. 

The coming upgrade is about the most crucial upgrade Ethereum would be carrying out since its establishment. It is the peak of several works by the network’s developers over a number of years. 

Most stakeholders are in favor of the migration from PoW to the eco-friendlier PoS mechanism. But some people in the community do not support it. Those against the migration to the PoS mechanism are working on forking the PoW to create a parallel Ethereum chain.