Elain Brown Tech 09.05.2022 07:Sep AM EDT

FTX Declares It Will Remain Open for Ethereum Merge, But Warns of High Risk

FTX clarifies that their platform will remain open during Ethereum's upcoming Merge.

FTX is a cryptocurrency exchange platform that allows users to buy, sell, trade, lend, and earn crypto. FTX offers advanced trading charts and order types.

The platform recently released its plan to halt and continue certain operations during Ethereum's Merge. FTX is stated to halt Solana (Wormhole) ETH, Arbitrum One ETH, and Binance Smart Chain (BSC) during a specific window time.

The company continues to update its platform about the timeline of its operations. It continues to warn users of the high volatility that is expected during the transition and encourages users to manage their positions accordingly.

FTX Continues with Ethereum

FTX recently clarified that Ethereum will still be available on their platform during The Merge.

However, just a few hours ago, Cointelegraph reported that the company first announced that it would halt the transactions of the cryptocurrency during the Ethereum Merge.

In a now deleted tweet, FTX stated, "As the ETH merge approaches, FTX will temporarily disable blockchain transfers of secondary chains for ETH to make sure that settlement is clean; main chain ETH transfers will stay active for longer."

FTX clarified that the cryptocurrency will remain tradable on their platform through the Merge, although deposits and withdrawals in Ethereum will be halted for a certain time through the process of The Merge.

According to FTX, in regard to wrappers and layer 2 ETH, they will proceed with the actions listed below:

The Binance Smart Chain (BSC) Ethereum will be suspended on September 15, 2022 at 00:00 UTC.
The Solana (Wormhole) Ethereum will be suspended on September 15, 2022 at 00:00 UTC.
The Arbitrum One Ethereum will be suspended on September 7, 2022 at 00:00 UTC.

The Merge will be carried out in two stages: the upgrade of the Bellatrix consensus layer, followed by the upgrade of the Paris execution layer.

The Merge will take place approximately at the block height of 15,540,293 on the Ethereum mainnet when the Ethereum mainnet reaches the Terminal Total Difficulty (TTD) value of 58750000000000000000000.

The ability to make deposits and withdrawals will be immediately restored once The Merge process is complete and networks have stabilized.

FTX Added, "FTX will suspend ETH and ERC-20 token deposits and withdrawals at approximately half an hour before the Bellatrix consensus layer upgrade (epoch 144896 on the Beacon Chain: September 6, 2022 at 11:34:47 UTC) and the Paris execution layer upgrade (approximate timeline)."

What Is the Ethereum Merge?

Ethereum's Merge is an awaited event in the cryptocurrency and technology field. This activity means that ETH will be moving from proof of work to a new proof-of-stake consensus layer.

This transition has been highly anticipated as it proves further progression in the tech and crypto space since it is seen to offer numerous advantages over the previous proof of work system.

This Merge brings the promise of faster transaction speeds and lower energy consumption, making it possible for blockchains to become more scalable and, as a result, easier to gain adoption among new users.

Nevertheless, in the same line as FTX, Ethereum has issued a warning to its users, advising them to be on the lookout for scams that attempt to take advantage of consumers during this changeover.

Investors are being cautioned by the organization not to move their ETH holdings to any location in an effort to "upgrade to ETH2."

The organization has made it clear that there is no such thing as an "ETH2" token, and they have also stated that users will not have to take any action regarding their funds as they will remain intact.