Yahoo Finance Live anchors discuss Coinbase’s decision to temporarily pause new ethereum deposits and withdrawals during its merge expected sometime in September.
JULIE HYMAN: I want to bring you a quick trending ticker here because this is a big one. Shares of Coin, we are seeing a big decline there. A big and sudden decline, down 7%.
The company sent a blog post. It's going to temporarily pause new Ethereum and ERC-20 token deposits during the so-called merge, right? This is-- the merge as the migration from proof of work to proof of stake. For Ethereum, it's supposed to be on or around September 15.
And I think there are just some questions about-- you know, it is fairly, if not commonplace, it is a feature of various cryptocurrencies that you have these kinds of merges periodically or you have splits periodically as well. And so maybe there's some concern that if they're pausing, is Coinbase not ready for prime time when it comes to these kinds of events? I don't know but the shares are down--
BRAD SMITH: Yeah.
JULIE HYMAN: --quite sharply here.
BRAD SMITH: The concern seems to be around the number of prospective hacks even that might take place or the prospective scams that might take place as well. They outline that for the Coinbase users to be more aware, even that if someone was offering--
Leading up to the merge, they were saying not to send your Ethereum or Ether to anyone in attempt to upgrade to ETH-2 as there is no ETH-2 token. So you need to know that. And then they're also saying that the assets will be safe, secure during this period. No action required to actually upgrade on end users part.
JULIE HYMAN: So that seems kind of like a good thing.
BRAD SMITH: Yeah.
JULIE HYMAN: They're trying to take precautions.
BRAD SMITH: Right.
BRIAN SOZZI: Well, I wonder what chapter this falls under. Remember, they broke down their earnings release about a week ago? I wonder what chapter-- maybe this is chapter 15?
JULIE HYMAN: You loved-- you loved the chapters.
BRIAN SOZZI: I did.