Bitfinex announces the launch of pre-fork BCH futures markets

14 Nov, 2018
by Richard Allen
Bitfinex announces the launch of pre-fork BCH futures markets

As we approach the Bitcoin Cash hard fork, Hong Kong-based crypto exchange Bitfinex has opened up a new kind of financial instrument, according to an official  announcement.

After noticing a significant increase in short bets on Bitcoin Cash, which indicates that traders believe the split will be detrimental to the pice of Bitcoin Cash, Bitfinex has decided to introduce new Chain Split Tokens (CST).

“To prevent any risk of manipulation and hence to maintain a healthy market we have decided to use the Chain Split Tokens (CST) approach to govern this particular event,” the announcement reads.

Bitfinex believes the hard fork will result in the split of two chains. However, as CCN reports, there is a possibility of there being three chains. As part of their belief, there will be two version of CST – BAB, for Bitcoin ABC and BSV, for Bitcoin SV. While both will be tradeable against USD and BTC, neither will have margin trading.

Once a trader has opened a Bitcoin Cash short, they will be charged in BCH and the equivalent amount of BAB and BSV will be credited. Once the hard fork has occurred, a snapshot will be taken of all Bitcoin Cash balances.

It’s important to note that both long and short positions will be liquidated. Anyone who is short BCH will have their accounts debited, and anyone who is long will have their account credited, depending on the outcome of the hard fork.

The Snapshot Event will take place at UNIX time 1542300000, or 4:40 PM UTC, November 15.

Users who end up with a negative balance in either token must correct their balance by December 31, or Bitfinex will do it automatically.

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Read more about: Bitfinex


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