Bitfinex Launches Segwit2x ‘Chain Split Tokens’

bitfinex launches segwit2x chain split tokens - Bitfinex Launches Segwit2x 'Chain Split Tokens'



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On October 5, the popular bitcoin exchange Bitfinex released its chain splitting terms and conditions concerning the upcoming November Segwit2x hard fork. The trading platform is also launching ‘Chain Split Tokens’ that will provide traders with the option to place bets on the “potential activation and mining of the Segwit2x protocol.” 

Also read: U.S. Regulators and Blockchain Advocates to Discuss ICO Implications on October 12

Bitfinex Releases New Terms and Segwit2x Future Markets

bitfinex launches segwit2x chain split tokens - Bitfinex Launches Segwit2x 'Chain Split Tokens'

The Hong Kong-based exchange, Bitfinex, has released information regarding the Segwit2x hard fork taking place in just over a month. According to Bitfinex, its new terms and conditions apply to all exchange users and will “govern” the use of a customer’s split tokens. The terms stated can also be changed at any time by Bitfinex and “without prior notice.”

Essentially, Bitfinex has named the split tokens in order to provide proof of ownership to users after the occurrence of a “Chain Split Event.” According to Bitfinex, a splitting event during the Segwit2x hard fork entails;

A ‘Chain Split Event’ means a fork in the incumbent Bitcoin blockchain that produces a viable and alternative blockchain — and that may only be used exclusively based on the consensus protocol of Segwit2x.

Bitfinex is also launching a speculative market so traders can bet on the outcome of Segwit2x and the legacy chain. The exchange details they have created a new pair of CSTs so traders can speculate on the upcoming fork and CSTs will trade against BTC and USD. Initially, the markets will have no leveraging abilities but if there is enough liquidity Bitfinex says they will reevaluate the market.

1507283779 399 bitfinex launches segwit2x chain split tokens - Bitfinex Launches Segwit2x 'Chain Split Tokens'

The Chain Split Token ‘BTX’

The names of the tokens will be labeled accordingly on the Bitfinex exchange starting with “BT1,” which represents the incumbent Bitcoin blockchain. The name “BT2” represents the Segwit2x protocol before the occurrence of a hard fork. “BTX” will be defined as a chain split token (CST) after the hard fork occurs.

Bitfinex further explains each contract settlement plan for a users current holdings and the following CST settlements that will occur after a chain split.

“In the case of BT1, the blockchain shall be defined by the consensus rules used on the Incumbent Blockchain, currently designated with the ticker symbol BTC,” explains the Hong Kong-based exchange. “In the case of BT2, Segwit2x shall be deemed to exist only if a blockchain has diverged incompatibly from the Incumbent Blockchain — Any settlements of BT2 shall be to B2X.”

In the unlikely event that only one blockchain exists, and it is compatible with the consensus rules of both the incumbent blockchain and Segwit2x, then a determination may be made, in the sole and absolute discretion of Bitfinex, as to whether that blockchain is more compatible with the consensus rules of the incumbent blockchain or with Segwit2x effective on October 5, 2017.

Additionally, Bitfinex explains they will assume no “liability or responsibility” for losses associated with CSTs, Digital Tokens, or B2X. Furthermore, after the hard fork and following settlements, Bitfinex “may or may not list B2X.”

What do you think about Bitfinex’s new terms and conditions regarding Segwit2x? Let us know what you think in the comments below.

READ  PR: Mirocana. Complex AI Trading Algorithms Are Available Now

Images via Shutterstock and the Bitfinex logo. 


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