Coinbase: The request for cancellation of pledge will begin to be accepted 24 hours after the Shanghai Capella update

According to reports, Coinbase stated on Twitter that around 24 hours after Shanghai Capella upgraded to the Ethereum network, Coinbase will begin accepting requests to cancel the pledge, which will allow users to cancel the pledge of ETH. However, this does not mean that users will be able to immediately cancel the pledge of their ETH. Because Coinbase said, “The Ethereum agreement controls the process of canceling the pledge, and we are just pipelines. We cannot share the exact waiting time when you request to cancel the pledge.” Coinbase currently provides a 6.0% mortgage ETH annual return.

Interpretation of this information:

Coinbase, a popular cryptocurrency exchange, has announced that it will begin accepting requests to cancel the pledge of Ethereum after Shanghai Capella upgrades to the Ethereum network. This move will allow users to retrieve their pledged ETH, which was used as collateral in a mortgage on the Coinbase platform, though users should not expect to be able to cancel their pledge immediately. Coinbase has clarified that the Ethereum network controls the process of cancelling the pledge, meaning that they are simply a conduit for the withdrawal process, and they cannot predict how long it will take for a user’s request to be fulfilled. Currently, Coinbase offers a mortgage return of 6% annually for ETH.

This announcement is significant as it marks a more flexible approach to cryptocurrency asset management for Coinbase customers. The option to retrieve pledged ETH will provide much-needed liquidity to users who may have been struggling financially or who have changed their investment strategies. Additionally, this update will give users more control over their cryptocurrency assets, which can directly affect their investment strategies.

One possible reason for Coinbase’s recent decision may be the increased competitive pressure from other platforms that offer more flexible options for cryptocurrency withdrawal. In particular, decentralized finance platforms such as MakerDAO and Compound have become increasingly popular in recent years, offering users higher returns on their assets and more flexibility in terms of asset management. In response, Coinbase may be seeking to provide more options to its users to avoid being left behind in the market.

Overall, the decision to allow users to cancel their pledges of Ethereum is a positive step for Coinbase customers, providing greater liquidity and flexibility in cryptocurrency asset management.