FTX crypto exchange will briefly halt all deposits and withdrawals of ETH and ERC-20 tokens as the Etheruem blockchain prepares to transition to its eco-friendly development, named Consolidation.
Bellatrix’s final update for this transition to completion is
scheduled to begin on Tuesday, September 6. The integration is expected to
arrive around September 15, if all goes well.
In an effort to ensure that no transactions are lost or
compromised during this transition, FTX will suspend all deposits and withdrawals
for at least 30 minutes on Solana, Arbitrum, and other blockchains.
“FTX will stop ETH and ERC-20 token deposits and withdrawals
approximately half an hour before the development of the Bellatrix consensus
layer. It is your responsibility to understand the implications of the merger.
FTX is not responsible for any losses caused,” the company said in its letter.
blog post,
The Bahamas-based crypto exchange, which claimed to have
more than a million users as of February this year, also posted an update on
Twitter.
This decision from FTX comes a few days after a DappRadar report
warned that stablecoins and transactions based on the Ethereum blockchain could
face challenges as the blockchain transitions from its powerful Proof-of-Work
(PoW) mining model. largely to energy efficiency. Proof-of-stake (PoS) mining
model.
While the PoW mining model is notorious for consuming large
amounts of energy, blockchains that support PoS are said to be energy
efficient.
If the Ethereum blockchain changes its version of Merge, its
energy consumption will be reduced by 99.95 percent.
On the back of the Merge release inching closer, the OpenSea
NFT market recently said it will only support the upgraded version of the
blockchain.
Earlier this month, major stablecoin Tether and Circle Pay,
issuers of USD Coin, also extended support for integration.
While Circle Pay has said that once Merge is released, it
will only use that version of Ethereum for USD Coin operations, Tether has
decided to start making arrangements to support the merge in accordance with
its release schedule.