Cryptocurrency exchange Coinbase will suspend deposits and withdrawals of Ethereum and ERC-20 tokens during the blockchain’s transition to the Proof-of-Stake (PoS) consensus algorithm.

Ethereum🤝Proof of Stake

It’s finally happening! Here’s how we prepare for The Merge👇https://t.co/AIIUqWcDxm

— Coinbase (@coinbase) 16 August 2022

“We are reviewing this incident at Coinbase. [The Merge] It will support it in various ways as an important step towards mass adoption of cryptoeconomics and consistent with our mission to increase economic freedom around the world,” the message says.

The exchange announced the temporary restrictions as a precautionary measure. The company’s product manager, Armin Rezayan-Asel, noted that Coinbase does not expect problems with other networks besides Ethereum trading.

The platform will also inform about the resumption of operations.

“It is important to always be on the lookout for fraud, especially before a merger. We recommend that you do not attempt to “upgrade” your ETH to ETH2 as there is no ETH2 token. Assets will be safe during this time and you do not need to take any action for the update,” he said.

Rezayan-Asel advised Coinbase Prime customers to initiate withdrawals and deposits before or after the mainnet transition to PoS is complete.

Recall that the developers planned The Merge for September 15-16. They brought the deadline closer after the successful migration of the Goerli testnet to the PoS algorithm on August 11. This was considered the last rehearsal before the update was activated on the mainnet.

On August 13, prices of the second-largest cryptocurrency by capitalization surpassed the $2,000 mark for the first time since the end of May.

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