Exchange Preparing for 'Merge Upgrade' Temporarily Suspends Ethereum Deposits and Withdrawals

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Cryptocurrency exchanges are temporarily suspending deposits and withdrawals of Ethereum and other tokens ahead of the Ethereum Merge upgrade.

According to industry sources on the 6th, Upbit, Bithumb, Coinone, Korbit, and Gopax will temporarily suspend deposits and withdrawals of Ethereum (ETH) and Ethereum-based ERC tokens starting from midnight on the 8th. The resumption of deposits and withdrawals will be announced after the Ethereum Merge upgrade is completed and network stability is confirmed. Additionally, overseas cryptocurrency exchanges such as Binance and FTX have also decided to temporarily suspend Ethereum deposits and withdrawals.

The Merge upgrade, scheduled for the 19th, aims to transition the Ethereum blockchain algorithm from the existing Proof of Work (PoW) method to Proof of Stake (PoS). Proof of Work involves participating in the blockchain through computer processing power and receiving rewards via mining, while Proof of Stake means staking held cryptocurrency in the blockchain to participate in validation and creation, receiving coins as compensation. Exchanges have decided to temporarily suspend deposits and withdrawals to prevent investor losses due to network instability during the upgrade process.

Upbit stated, "Please note that during the suspension period of ETH and ERC token deposits and withdrawals, and before and after the Merge upgrade, the prices of related digital assets may fluctuate sharply or price differences may occur compared to other exchanges, so please be cautious when investing." They added, "Although deposits and withdrawals of ETH and ERC tokens will be temporarily suspended, trading of these digital assets will continue without interruption."

This content was produced with the assistance of AI translation services.