As part of FTX’s September upgrade, the cryptocurrency trading platform has announced that all Ether (ETH) transactions across all blockchains will be suspended until the update is complete.
Despite the assurances of Ethereum developers that there will be no downtime during the Merge, one of the most anticipated upgrades for Ethereum, investors have taken preventative measures to guarantee the security of their funds.
The Merge upgrade will result in Ethereum’s blockchain becoming proof-of-stake (PoS) instead of proof-of-work (PoW), which will result in lower energy consumption and sharding. According to Ethereum developers, The Merge was designed in such a way that the transition to PoS would be seamless.
This is due to the total terminal difficulty (TTD), which determines the length and distance of the chain and the total amount of power required to build it, which guarantees the transition. Although FTX provided this explanation, it decided to halt deposits and withdrawals until the Merge is completed.
For reference this tweet highlights some risks:https://t.co/NVAaQZ7b7W
— LeslieisHODLing (@LeslieisHODLing) September 5, 2022
As there was no clarification from FTX regarding the pause of payments, users on Twitter also raised concerns. FTX announced on September 5, 2022, that main chain ETH transfers will continue to operate for longer to ensure a smooth settlement during the ETH merger. In addition, FTX will halt the secondary chain ETH transfers temporarily to ensure a smooth payment during the ETH merge.
Various Ethereum trading halts are scheduled across different blockchains, but this is still subject to change due to unforeseen difficulties. The cryptocurrency exchange warns that the user must comprehend the implications of this message and that significant price swings will not cause any losses.