Home Blockchain Coinbase Says It Will List Potential Forked Tokens After Post-Ethereum Merger

Coinbase Says It Will List Potential Forked Tokens After Post-Ethereum Merger

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Coinbase Says It Will List Potential Forked Tokens After Post-Ethereum Merger

With the highly anticipated Ethereum “merger” upgrade approaching, the possibility of a fork is more likely, even if its chances of success are low.

Recently, exchanges including Coinbase have announcement plans to consider listing forked tokens.

In an updated blog post on Thursday, crypto exchange Coinbase said it will evaluate any potential forked Ethereum tokens that may arise post-merger.

According to the blog post, Coinbase said its goal is to “list all legal and safe assets to list in order to create a level playing field for all new crypto assets created while continuing to protect our customers.”

If an Ethereum proof-of-work fork occurs after the merger, “this asset will be scrutinized with the same rigor as any other asset listed on our exchange,” Coinbase said.

If such a fork occurs, Coinbase said it will determine which chain — proof-of-stake or proof-of-work miners — will hold its value.

This is important, as the backing of Coinbase and other major crypto-related companies could make or break the success of these forked chains and their tokens.

In early August, Ethereum creator Vitalik Buterin recognized the fork that may occur as a result of the “fusion” upgrade. He noted, “If a proof-of-work fork gets large, then there are definitely a lot of applications that will have to choose one way or another.”

While Buterin wasn’t worried about a potential fork, he was concerned about scams targeting retail investors during the merger’s transition. Users may confuse forked chains named after Ethereum as it may not be clear whether these chains are correctly associated with Ethereum.

Coinbase acknowledges this in its blog post: “It is important to always be alert for scams, but especially before the merger. We recommend that you do not send your ETH to anyone for the purpose of “switching to ETH2” because there is no ETH2 token… [N]o an action is required for the upgrade on your part.

Other major changes likely to come to Ethereum

If a fork occurs, it will likely lead to the creation of new ETH tokens. Besides Coinbase, many other exchanges, such as Binance, have recently stated that they will evaluate any new potential coins.

Friday, August 26e, Binance said it was “closely monitoring” the merger and would support it at launch. The exchange revealed its intention to support the Proof-of-Stake version of ETH ahead of the crucial update and also welcomes the list of other ETH-related tokens.

Just like Coinbase and Binance, other crypto companies such as stablecoin giants Circle and Tether and decentralized exchange Uniswap Labs have signaled their support only for the Ethereum proof-of-stake chain.

Ethereum’s “Merge” update is widely considered to be one of the biggest crypto events of recent years. The Ethereum merger is should occur on or around September 15. During this event, the Ethereum blockchain is expected to undergo the upgrade, which will combine the Ethereum mainnet with the proof-of-stake beacon chain – the network will move away from the proof-of-work mechanism.

The upgrade will move the network to a new consensus mechanism that relies on validators rather than miners. The change could mark the end of mining on Ethereumsomething that Ether (ETH) miners are not happy with as their source of income will come to an end.

Therefore, this group of miners and other like-minded members of the crypto community, including TRON founder Justin Sun and established miner Chandler Gou, among others, have backed a plan for a hard fork that maintains the status quo – Ethereum post-merger fork to create what they call “ETHPoW” (the proof-of-work version of Ethereum).

Crypto miners and like-minded groups hope that with hard forking, the Ethereum merger will create “ETHPoW”. With this, miners will retain the ability to mine Ethereum.

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