As the much-anticipated Ethereum Shanghai Capella upgrade draws near, scheduled for tomorrow, several prominent cryptocurrency exchanges have taken the proactive step of suspending deposits for ERC-20 tokens. In a recent announcement, leading cryptocurrency exchange OKX has decided to temporarily suspend the deposits and withdrawals for all ERC-20 tokens one hour before the upgrade, ensuring a seamless transition and protecting users’ assets.
OKX To Suspend ERC-20 Token Transactions Tomorrow To Avoid Congestion
The Ethereum (ETH) network is scheduled to undergo the Shapella upgrade at epoch 194,048 on April 12, 2023, at 10:27 pm (UTC). In anticipation of the event, popular cryptocurrency exchange OKX has announced that it will temporarily suspend deposits and withdrawals of ETH, Optimism (OP), Arbitrum (ARB), and ERC-20 tokens, as well as tokens associated with the OP, ARB, and zkSync Lite networks.
The suspension will begin on April 12, 2023, at 9:30 pm (UTC) to ensure the stability of the platform and the security of users’ assets during the upgrade process. In the announcement, OKX revealed that it would be increasing the minimum confirmation count for ETH deposits from 12 blocks to 64 blocks post-upgrade. However, the exchange has assured users that the trading of ETH, Optimism (OP), Arbitrum (ARB), and ERC-20 tokens, and tokens of OP, ARB, and zkSync Lite networks, will continue uninterrupted during the network upgrade.
OKX has further ensured users that it will handle all technical requirements for those holding the ERC-20 tokens in their OKX accounts. Once the upgraded Ethereum network is deemed stable, OKX plans to reopen deposits and withdrawals for the impacted tokens on the Ethereum network without any separate announcement.
OKX Advises Users To Avoid Trading During The Upgrade
Shapella, the short form for Shanghai Capella, is a major upgrade following “The Merge,” which saw Ethereum transition from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism. This upgrade will allow validators to withdraw stETH tokens held on the Beacon chain, with the total value of ETH tokens staked on the chain amounting to $18 million since 2020.
In addition to enabling withdrawals, Shapella brings critical changes to the execution and consensus layers, complemented by enhancements to the Engine API. This upgrade signifies a substantial step forward for the Ethereum network as it continues to evolve and improve its capabilities.
As the hype around the Shanghai upgrade continues to rise, analysts predict the increased trading activity and massive price fluctuations in the crypto market, which may eventually increase the risks of trading during the event.
While the hype surrounding Shapella is undoubtedly a positive sign for the Ethereum network, it also raises concerns about possible congestion during the upgrade. As users rush to complete transactions before the upgrade takes effect, the network could experience a significant increase in traffic. This congestion may lead to slower transaction times and higher gas fees, potentially impacting users who are unprepared for the changes.
OKX’s decision to halt both deposits and withdrawals of ERC-20 tokens reflects the exchange’s commitment to providing a secure trading environment for its users during this crucial period. With billions of dollars in daily trading volume and millions of users worldwide, OKX’s stance highlights the importance of the Shanghai upgrade for Ethereum and the broader blockchain ecosystem.
For Ethereum users and investors, OKX’s announcement serves as a timely reminder of the risks and challenges associated with major network upgrades. While the Ethereum development community has rigorously tested the Shanghai upgrade, unforeseen issues may still surface, leading to potential delays or disruptions. As a result, traders and investors must stay informed and be prepared to adapt their strategies accordingly.
