Coinbase is planning to halt Ethereum deposits & withdrawals
Don't panic!
This isn't the end of Ethereum or anything. This is a considered move on Coinbase's end - all in the name of safety.
'The Merge,' or as we refer to it internally: 'Ethereum's big ol' system update,' will be one of, if not the biggest blockchain updates in history, and it's scheduled to take place on September 16th.
...and because Ethereum is essentially the de facto 'operating system' for a large chunk of Web3, it's important that the update goes smoothly.
(So far, things are looking good).
But just in case something does go wrong, Coinbase will temporarily pause Ethereum and ERC-20 token deposits & withdrawals, during The Merge.
That last bit, about 'ERC-20 tokens'? It's important.
It refers to projects that are built on Ethereum. Which is A LOT (800+).
It's easy to miss, but some big tokens, like USDC, USDT, Chainlink and Shiba Inu, are all ERC-20 based.
...so what will the effect of hitting pause on billions of dollars worth of crypto be?
Usually, if the largest crypto exchange in North America were to halt deposits and withdrawals of ETH tokens out of nowhere, the market would most likely react in panic.
ERC-20 tokens would probably see their prices drop across the board, as everyone tried to move their money into unaffected cryptocurrencies.
...but we're guessing that's why this announcement has been made so far in advance.
This way, the market can keep its head, and price in the disruption ahead of time.
Smart.
