FTX Halts ETH Withdrawals And Deposits on BSC, Solana, Arbitrum During The Merge
Officially, the ETH developers ensured that no downtime would happen during the ETH merge, and the crypto community and the exchanges still took measures to ensure that the investor's funds remained safe. Recently, the famous crypto exchange known as FTX also stopped any ETH transactions happening on the secondary blockchains. This will continue until the merge and other upgrades of September are concluded.
However, the FTX soon took a U-turn from this measure and even deleted the tweet. The CEO of FTX also further clarified that any type of ETH trading will remain functional even though the merge is updated.
ETH Merge Upgrade
The recent merge upgrade of ETH will introduce one major change to the blockchain of Ethereum. The PoW (proof of work) mechanism will be changed to the PoS (proof of stake). This change is done to ensure that the energy consumption is reduced while also allowing new sharding capabilities.
According to the developers of ETH, the merge update is designed in such a way that no downtime will be experienced by the users. However, despite this message from the developers, the FTX exchange still decided to spend any deposits/withdrawals until the merge upgrade was finished.
The suspension of deposits and withdrawals related to ETH will start at different times. However, it could change depending on any upcoming complications arising due to the upgrade.
The FTX exchange also clarified that it would not be responsible for any losses due to the large price fluctuations.
No Reduction In Gas Fees
The Ethereum foundation also clarified a big misconception related to the recent upgrade. They said that the merge would not decrease the gas fees on the network.
According to them, network demand which is relative to the capacity of the network, determines the gas fees of the ETH. Although the ETH mechanism will change significantly, it will not change anything that can influence the network capacity.