Bitcoin

Bitfinex to introduce ‘Chain Split Tokens’ as BCH Pre-Fork strategy

With Bitcoin Cash(BCH) hard fork approaching closer, Bitfinex has announced to introduce ‘Chain Split Tokens’. This strategy is perhaps essentially to mitigate market fluctuation, says crypto exchange.

Its evident that the fork will result in Bitcoin Cash ABC and Bitcoin Cash SV and also the market might witness a negative impact on the per-coin price of Bitcoin Cash. In order to overcome all these issues, Bitfinex came up with the idea of Chain Split Token(CST)

As highlighted on the blog post,

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

As explained on their official page, the exchange house is embracing this fork implementation to be happening on November 15, 2018, and CST will provision the traders to trade with resultant  “ABC” and “SV”. Also, the newly created implementations are  called “BAB” (ABC implementation) and “BSV” (SV implementation).

Any trader who holds BCH will be charged identical amounts on both new tokens soon after the fork is complete. However, the Bitfinex does not intend to continue listing the Bitcoin Cash (BCH) proper. The token manager will apparently take care of balance snapshot event that is

 Upon creation of CST by a user, the BCH will be debited from the user’s account and an equivalent amount of BAB and BSV will be credited. Users will be able to reverse this process at any time using the Token Manager.

Also, the Bitfinex users, positions in BCH margins will be liquidated both ways. Those who are short will be debited and those who are long will be credited, depending on the results at the time of the actual hard fork.

If there is not enough BAB and BSV in the account, these users will have a negative balance of BAB and BSV. Anyone who is long BCH during the Snapshot Event will then have BAB and BSV credited to their account

The precise fork timing as published on the official page is UNIX time 1542300000, i.e. 4:40:00 PM UTC, November 15.

As a disclaimer, the exchange mentions that it is important for traders ‘who wind up with a negative balance in either token will have to correct their balance by December 31st, or Bitfinex will automatically do it for them.

On a side note, the company doesn’t intend to show any sort of favoritism to either of the projects but would wish to provide support to their customers during and after the fork period.

What’s your bet BCH hard fork? Share your thoughts in below comment section

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Lead writer at Wolfcone.com and avid reader. My interests lie in everything and anything related to technology. I firmly believe cryptocurrency has the power to revolutionize world economy and blockchain will be next big thing in human history.
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