While debates are open about the possible survival of an Ethereum Proof-of-Work after The Merge, Binance joins the list of cryptocurrency exchanges that will support this scenario. Users of the platform could then benefit if the upcoming hard fork does not reach consensus.
Binance to list potential ETH-PoW following The Merge
With The Merge approaching and speculation about the survival of a proof-of-work (PoW) consensus version of Ethereum, the Binance platform has chosen to factor this possibility into its action plan.
The exchange thus evokes two scenarios. The first scenario is the simplest: everything goes as planned and only the Proof-of-Stake (PoS) chain remains. In this case, nothing happens logically. In the other option, we would end up with a new version of Ethereum and therefore of ETH. At this point, a snapshot will be made of the users’ holdings before the Paris update. Then, a one-to-one distribution will be made.
Regarding the value of a hypothetical new ETH, it should be noted that the idea of a price equivalent to its previous version is highly unlikely. This would theoretically be true in the first few seconds of this new channel, but seasoned investors are prepared for this eventuality and it’s a safe bet that bots are already ready to move in to capture this potential profit.
Binance explains the upcoming process
The pre- and post-Merge events will bring some slight “disruption” to the Binance platform for some products around ETH.
As for the various trading vehicles, whether spot or derivative, they will not be affected, although Binance reserves the right to reverse this decision. However, the exchange warns that volatility could rise sharply and increase the risk. Deposits and withdrawals for ETH staking or BETH will be suspended between September 14th and 16th. These dates are subject to change if the Paris update is delayed.
Moreover, regarding the Bellatrix and Paris updates, ETH deposits and withdrawals on a spot account will be temporarily suspended on September 6th and 15th respectively.
Nothing is less certain about the long-term viability of an ETH-PoW, and for good reason, it seems that the idea of the Merge is a consensus among most of the players in the ecosystem. Binance is nevertheless making a logical business choice, without which its customers could find themselves shortchanged.