- Hong Kong cryptocurrency trading platform BitMEX has liquidated all of its Bitcoin Cash (BCH) granted to its customers and will be crediting all affected with an equal amount of Bitcoin (BTC).
- Majority of Bitcoin to USD trading is done through BitMEX.
Though it is not clear how much volume BitMEX sold-off, markets were already on the downtrend prior to the news so it does not seem to have directly contributed to that. It is more likely that the recent talks of South Korea closing exchanges caused the sink in prices.
What is important is here is the fact that a major trading platform is taking sides in what has been a vitriolic feud between BTC and BCH. Bitcoin Cash was born out of a “scaling debate” with its parent currency. They forked from BTC because they were able to achieve faster processing speeds with lower transaction costs. BitMEX has had a strong position on forks in the past, rejecting Bitcoin derivation Segwit2x in November 2017.
“However, months after the fork, it is clear this coin still has value and popular demand, so we have decided to credit Bitcoin at the prevailing Bitcoin Cash price. Do not expect future coins to be credited in this way. BitMEX reserves the right to credit forks or not – in the presence of doubt, always withdraw first.”
Why Is This Significant?
Cryptocurrency exchanges and trading platforms are hold a lot of power in the growth and sustainability of a fledgling currency. If a major platform drops a currency, it can potentially have serious consequences for its future.