The world’s largest cryptocurrency exchange Binance has made an update available to customers on the possible effect of The Merge on their investments. According to a Binance announcement, the crypto exchange attempted to answer questions concerning what happens to customers’ Ethereum (ETH) following the Merge.
The Merge which is a transition from proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism is scheduled to fully launch in September after several testing. It is bound to feature a merger from the Ethereum Mainnet to the Beacon Chain.
Many speculations, as well as a misconception, has surrounded the emergence of The Merge. One such misconception which had caused some rancor amongst crypto enthusiasts was that of gas fees.
Ordinarily, these crypto enthusiasts speculate that gas fees will reduce after the Merge. Rather, the ETH Foundation responded to say that gas fees and many other parameters which have to do with the capacity of the network will not be affected either positively or negatively by the Merge. Now to the fate of Binance customer’s ETH after the Merge.
Binance customers would not need to activate or perform a manual transfer of their funds after the Merge. Automatically, all ETH will be transferred over to the Merge and still appear as ETH in the customer’s wallet.
Binance Plans to Suspend ETH Deposits and Withdrawals
Invariably, Binance plans to suspend ETH withdrawals and deposits from its platform during the Merge upgrade.
Also, the deposits of the ERC-20 tokens will be suspended as well. Therefore, any person who invites the users to purchase ETH2 or transfer funds during this time will be regarded as a scammer.
Additionally, Binance explained further that no request will be made to users to transfer funds to complete the Merge upgrade. “Binance will never ask users to send funds in this manner,” the post read.
Presently, the crypto exchange has not mentioned any changes which would be made to its product offerings except the delisting of ETH from its mining service. The suspension of deposit and withdrawal which was earlier started is only a precautionary measure to mitigate the potential risk that may be associated with the Merge.