• How Binance and OKEx are Preparing for the Ethereum London Hard Fork

  • The London hard fork is set to take place on the Ethereum blockchain, and several exchanges are taking precautions to ensure that users’ funds are safe once the hard fork is implemented.

    Ethereum was scheduled to undergo a hard fork at block height 12,965,000, which is expected to happen tomorrow (August 8th, 2021), and one of two scenarios is likely to happen: either the chain is split, and a competing network with a new token is created, or no new token is created, and most exchanges will resume ETH and ERC-20 token operations like withdrawals and deposits after the hard fork.

    What Steps Are Exchanges Taking to Prepare for the Hard Fork?

    Binance has announced that it will suspend ETH and ERC-20 token deposits and withdrawals at 11:45 a.m. on August 5, 2021. (UTC). This is done to reduce trading risks if a new token is created during the hard fork, which could result in extreme price volatility.

    Some Binance products, such as Spot and Margin trading, will be unaffected; however, the exchange warned users to be cautious because price volatility is often high during a hard fork. Binance Crypto Loans will be unavailable for 42 hours.

    OKEx, a cryptocurrency exchange, said that if ETH splits and a new token is created, it will credit users with ETH from the chain. It also cautioned users against transferring ETH during the 10-minute snapshot period.

    According to the blog post, “we will then credit users with the token from the minority chain at a 1:1 ratio based on the snapshot of ETH balances at block height 12,965,000, or approximately 2021-08-05 11:55 (UTC),”

    Long-Term Benefits of the London Hard Fork

    OKEx CEO Jay Hao provided his thoughts on the latest hard fork to CryptoPotato.

    “With a major overhaul of the existing fee structure, the Ethereum London hard fork event introduces a new pricing mechanism to smooth out these gas price spikes. It appears to be a step forward for ETH’s value proposition and the network’s user experience, but it is only the beginning. More layer-2 protocols, as well as Ethereum 2.0, are on the way,” said OKEx CEO Jay Hao.

    “We also can’t deny that more DeFi projects are adopting the multi-chain strategy and migrating to other blockchain networks – particularly those with high cross-chain operationality.”

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