The Ethereum blockchain is scheduled to undergo the London hard fork and several exchanges are taking precautions to ensure that user funds remain protected once the hard fork is successfully implemented.
At the height of the 12,965,000 block, scheduled for tomorrow (8 August 2021), Ethereum would have had to undergo the hard fork and two scenarios are likely; either the chain is split and there is a competing network with a new token or no new token is created and most exchanges will resume ETH and ERC-20 token operations as withdrawals and deposits after the hard fork.
How are hard fork exchanges preparing?
Binance has announced that it will suspend deposits and withdrawals of ETH and ERC-20 tokens at 11:45 am (UTC) on 05-08-2020. This is to ensure that trading risks are reduced if a new token is created during the hard fork, which could lead to extreme price volatility.
Some Binance products such as Spot and Margin trading will not be affected, however, the exchange has warned users to take precautions as price volatility is often high during a hard fork. Binance Crypto Loans will be suspended for 42 hours.
Cryptocurrency exchange OKEx said that if ETH splits and a new token is created, the platform will credit ETH users from the chain. It also warned users not to transfer ETH during the snapshot period, which lasts 10 minutes.
“Then we will also credit users the minority chain token with a 1: 1 ratio based on the snapshot of the ETH balances at block height 12,965,000, or approximately 2021-08-05 11:55 (UTC),“, reads the blog post.
London Hard Fork good for the long haul
Commenting on the latest hard fork, OKEx CEO Jay Hao expressed his thoughts to CryptoPotato.
“The Ethereum London hard fork event introduces a new pricing mechanism to smooth out these gas price spikes with a major overhaul of the existing pricing structure. It looks set to improve ETH’s value proposition and network user experience. but that’s just the beginning. More Layer 2 protocols and Ethereum 2.0 are on the way, “said Jay Hao, CEO of OKEx.
“Furthermore, we cannot deny that there are more DeFi projects adopting the multi-chain strategy and migrating to other blockchain networks, especially those with high cross-chain operations.”
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