Binance has announced that it will support new fork tokens that will emerge after the Ethereum merge. The leading cryptocurrency exchange plans to credit tokens from any fork version of Ethereum to users’ accounts. We are only 3 weeks away from the update date for the leading altcoin.
Binance assured to support altcoin investors
Users who own ETH on the exchange will be able to receive an equal amount of tokens from any forked Ethereum chain created after the merge. Binance also plans to use the abbreviation “ETH” for the planned PoS version of Ethereum.
#Ethereum will migrate to a PoS chain at approximately 12:30am UTC on September 15, 2022.
Ahead of any possible ramification from this event, #Binance is taking steps to reduce trading risks and to keep user funds SAFU.
🧵 on some things to note about our plans for The Merge.
— Binance (@binance) August 25, 2022
Binance prepares for possible disruptions
The exchange announced today that it plans to credit users’ accounts with tokens from any fork version of Ethereum created during the network’s merge event scheduled for September 15. In another statement, he outlined the scenario where Ethereum splits into two competing blockchains, creating a new token. In such a case, Binance will continue to use the acronym “ETH” to represent the planned Proof-of-Stake Ethereum, which most crypto companies and DeFi protocols state will support.
However, the exchange also plans to issue tokens from forked Ethereum to users’ accounts, if created. Binance’s statements during the day included the following:
Based on a snapshot of ETH balances prior to the Paris execution tier upgrade, we will credit users’ Binance accounts with the minority chain forked token at a 1:1 ratio.
Binance will pay for potential losses after merge
The exchange also stated that it will support withdrawals for any potential Ethereum forks. Additionally, fork tokens will go through the same strict listing review process as other coins. In the same announcement, Binance confirmed that it will suspend deposits and withdrawals for ETH and ERC-20 tokens on September 6, in preparation for the network’s Bellatrix consensus tier upgrade, and on September 15, when the main merge event will begin. Other exchanges such as Coinbase have stated that they will take similar measures to prevent users from losing money during network upgrades.
Merge is the most important update to the Ethereum network expected since 2015. At one point it is the culmination of years of work by its developers. Most Ethereum stakeholders welcome the transition from the energy-intensive PoW consensus mechanism to the greener PoS. However, a private group of miners oppose the update.
In recent weeks, those opposed to Ethereum’s transition to PoS have talked about forking the network. Moreover, they are still talking about launching a competing version of the old PoW network. When the merge happens next month, it remains to be seen whether there will be enough support to fork Ethereum. cryptocoin.comAs you follow, the Ethereum team continues to work hard until then.
