Binance backs post-merge Ethereum fork

The Proof-of-Stake implementation of Ethereum will also trade on Binance under the “ETH” ticker.

The major cryptocurrency exchange stated Thursday that it would credit user accounts with tokens from any split versions of Ethereum that are developed during the September 15 merging event.

In a note, the exchange described a potential scenario in which Ethereum breaks into two rival chains, resulting in the creation of a new coin. In such a scenario, Binance would continue to use the “ETH” ticker to represent Proof-of-Stake Ethereum, which the majority of crypto firms and DeFi protocols have declared they would support.

In addition, the exchange intends to credit user accounts with tokens from a branched Ethereum chain, should one be formed. 

Additionally, Binance has said that it would enable withdrawals for any hypothetical splits of Ethereum. However, the forked token will undergo the same rigorous listing process as all other coins and tokens on the exchange.

Other exchanges, including like Coinbase, have announced that they would take similar precautions to protect consumers’ cash during network improvements.

The Merge is the result of years of effort by Ethereum’s developers and is perhaps the most important upgrade to the Ethereum network to date. In recent weeks, critics of Ethereum’s migration to PoS have discussed forking the network, therefore establishing a rival blockchain that continues to employ the old PoW consensus. It is uncertain if there will be sufficient support to split Ethereum when the Merge occurs next month.

Also Read: Bitcoin Sales Ease As Exchange Deposits Reach A 2-Year Low

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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