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FTX CEO corrects Cointelegraph

FTX CEO
TL;DR Breakdown
  • FTX CEO corrects Cointelegraph
  • Ethereum assures zero downtime during the Merge
  • Sam Bankman Fried explains their stance on the Merge

FTX CEO Sam Bankman Fried has corrected some information posted earlier today by Cointelegraph. According to Cointelegraph, the crypto exchange initially announced a suspension on all trades regarding Ethereum. In the said write-up, the move was adjudged to have been taken to help keep users funds safe from getting lost during the Merge. However, the FTX CEO has rubbished the news while assuring users that trading will go on as usual.

Ethereum assures no downtime during the Merge

The upcoming Merge is the much-anticipated transition of Ethereum to a Proof of Stake consensus mechanism. The network still uses Proof of Work which is set to change after the update. The move was taken to help reduce energy consumption and introduce different sharding methods.

Ethereum developers who have been working proactively on the update have previously mentioned that there are not expecting any downtime. This is a result of the Terminal Total Difficulty, which is expected to enable the transition through the overall mining power that will move inside the chain. According to Cointelegraph, the platform intends to suspend all trading activities related to Ethereum until after the Merge has been completed.

FTX CEO explains the platforms stance on the Merge

Sam Bankman Fried took to Twitter to clear the rumors and assured users that things would not go as Cointelegraph reported. The FTX CEO pointed out that trading will be enabled throughout the Merge. This means that all trades, deposits, and withdraws carried out on Ethereum during the period will be seamless. However, he voiced his concerns about the capabilities of the wrappers of other chains that might not be able to cope with the Merge. As per the official announcement, the platform announced that although trades on Ethereum will be active through the period, it will not be so on Layer 2 and wrappers.

The platform has also warned users to be careful when carrying out trades on the platform as they only will bear the risk should anything happen to their wallets or digital assets through this period. Also, the Ethereum Foundation has clarified that the Merge will not limit the amount traders pay for gas on the network. The foundation noted that gas fees are network generated and are charged according to the network’s capacity. Although the need for excessive energy is eliminated, it will not change the specific characteristics of the network.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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