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As Exchanges Prepare For Merge, Is There A New Token On The Way

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As Exchanges Prepare For Merge, Is There A New Token On The Way

The Ethereum [ETH] Merge scheduled for next month is arguably the hottest topic in the crypto industry right now. Investors, institutions, and even regulators should keep a close eye on ETH. This is due to the expected transition to the power-efficient proof-of-stake (PoS) model.

Exchanges are getting ready

Crypto exchanges including Coinbase, Binance, Uniswap and Crypto.com have shown their support for the highly anticipated merger. However, these organizations have announced certain measures to ensure that the transition is properly updated on their platforms.

Coinbase announcement earlier this month, deposits and withdrawals of ETH and ERC-20 tokens will be suspended to ensure a smooth transition.

Binance followed suit and told users in a blog post that deposits and withdrawals of ETH and ERC-20 tokens will be suspended on September 15 at 00:00 (UTC).

Staking activities for these two exchanges will also be halted until the merger is complete. Stable projects Attached and Circle both reiterated their exclusive support for Ethereum PoS.

PoW potential hard fork

Most of the Ethereum community is in favor of the merger. However, a fraction of the community does not seem happy with the switch to PoS.

The faction is mostly made up of ETH miners. Miners risk losing their investments in expensive mining equipment. Moreover, the update would render their business model useless. Thus, miners anticipate a hardfork.

Binance further clarified that in the event of a fork, the ETH ticker will be reserved for Ethereum PoS. He also added that “withdrawals for the forked token will be supported.” A number of exchanges have updated their offerings in anticipation of such a fork.

Major whaling activity

Data de Santiment revealed that over the past three months, the top ten addresses without an ETH exchange have reduced their holdings by 11%. Meanwhile, the top ten addresses added an additional 78% ETH to their holdings.

The gap between these two has narrowed as we approach next month’s merger.

It can be argued that whales are transferring their holdings to exchanges to prepare for dumping in case ETH prices fall after the merger.

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