The Merge is one of the biggest crypto events of 2022 and could potentially break Ethereum and disrupt the crypto ecosystem.
It involves the transition from the energy-intensive Proof-of-work (PoW) system to a more energy-efficient Proof-of-stake (PoS) system.
Not only will The Merge reduce electrical consumption, it also aims to improve scalability and decentralization.
This upgrade will potentially split Ethereum into a Ethereum Proof-of-Work chain and an Ethereum Proof-of-Stake chain. These chains will both come with their own native token, but not all Crypto exchanges will support both tokens.
Binance
Binance will be suspending all ETH and ERC-20 token deposits and withdrawals ahead of the Paris execution layer upgrade at 2022-09-15 00:00 (UTC)
Binance is expecting two scenarios to occur:
- Scenario A: No new token is created and Binance will reopen deposits and withdrawals ASAP
- Scenario B: There will be a fork and new tokens are created. The “ETH” ticker will be used for the Proof-of-Stake chain and Binance would credit users the forked token at a 1:1 ratio based on the snapshot taken before the Paris execution layer upgrade.
Binance will also suspend all ETH cross and isolated margin borrowing from 2022-09-14 00:00 (UTC) to approximately 2022-09-16 00:00 (UTC).
FTX
FTX announced that they would suspend all ETH and ERC-20 token deposits and withdrawals half an hour before the Bellatrix consenses layer upgrade.
It will credit users with the forked PoW ETH at 1:1 ratio. But it will only list the forked PoW ETH at a later date.
The ETH ticker symbol will be reserved for the PoS ETH after the merge.
Coinbase
Coinbase will briefly pause all Ethereum and ERC-20 token deposits and withdrawals. After the merge, it will list all ETH2 (staked ETH) balances under Ethereum wallet. ETH2 will be removed from the exchange to avoid confusion.
The ETH2 balance will not be unlocked at the merge and it will only be available to trade or transfer until the Ethereum upgrade is complete.
ETH PoW will not be listed straight away and will be strictly reviewed like any other asset that is listed on Coinbase.
No mention that users will get ETH PoW after the merge if they hold ETH before the merge.
KuCoin
KuCoin will be suspending all ETH and ERC-20 token deposits and withdrawals ahead of the Paris execution layer upgrade at 2022-09-14 15:51 (UTC)
KuCoin is expecting two scenarios to occur:
- Scenario A: No new token is created and KuCoin will reopen deposits and withdrawals ASAP
- Scenario B: There will be a fork and new tokens are created. The “ETH” ticker will be used for the Proof-of-Stake chain and KuCoin would airdrop users the forked token at a 1:1 ratio based on the snapshot taken before the Paris execution layer upgrade. It will also support withdrawals for the forked token.
Other trading services will not be affected but KuCoin will suspend the lending and borrowing service of ETH before the merge.
Crypto.com
Crypto.com will temporarily suspend all ETH and ERC-20 token deposits and withdrawals ahead of the merge. ETH deposit and withdrawals to the following chains are also suspended: ARBit, Avalanche C-chain, Binance Smart Chain, Polygon, Optimism and Cronos.
Crypto.com is expecting two scenarios to occur:
- Scenario A: No new token is created andCrypto.com will reopen deposits and withdrawals once the Ethereum mainnet is stable.
- Scenario B: There will be a fork and new tokens are created. The “ETH” ticker will be used for the Proof-of-Stake chain and Crypto.com would airdrop users the forked token proportionate to their ETH holdings. It will also support withdrawals for the forked token.
Do note that Wrapped ETH (wETH) may or may not qualify for the distribution of forked tokens. Loaned ETH will not be eligible for forked token airdrop.
ETH Lending feature will be suspended from 2 Sep 2022 until the merge is completed.
Gemini
Gemini will pause all ETH and ERC-20 token deposits and withdrawals before The Merge. Users will still be able to trade as the other trading system will remain active throughout the merge.
All the ETH and ERC-20 tokens will be secured and a snapshot will be taken to ensure parity between assets held prior to and after the merge.
Both ETH and ERC-20 tokens like Gemini dollar (GUSD) will be shifted to the Ethereum PoS chain.
No mention that users will get ETH PoW after the merge if they hold ETH before the merge.
