BitMEX to Settle Contracts using Bitcoin Cash ABC After BCH Hard Fork
With the Bitcoin Cash (BCH) hard fork date quickly approaching, plenty of cryptocurrency enthusiasts are anxious as to how many crypto exchanges will support the event. We have had the likes of Binance, Coinbase, Ledger and BitMEX announcing their plans to handle the hard fork. In the case of the latter exchange, the team has just announced additional information as to how the platform will support the hard-fork on the 15th of November.
BitMEX to Settle Contracts Using Bitcoin Cash ABC Price
In a blog announcement that was also distributed to all users of the exchange via email, the team at BitMEX has advised that they will settle BCH contracts after the hard fork based on the value of Bitcoin Cash ABC. The email announcement went on to state the following:
Bitcoin Cash is expected to conduct a hardfork upgrade on 15 November 2018. There are two competing incompatible hardfork upgrade proposals…Bitcoin ABC and Bitcoin SV. Therefore, there could be a chainsplit; users holding BCH prior to the hardfork could end up with coins on both sides of the split.
On settlement, the BCHZ18 contract will settle at a price on the Bitcoin ABC side of any split and will NOT include the value of Bitcoin SV.
This is consistent with the approach BitMEX took when Bitcoin Cash initially split off from Bitcoin in August 2017. The Bitcoin / USD contracts were settled based on the Bitcoin price at the time and did not reflect the price of Bitcoin Cash.
Bitcoin Cash ABC will also be used in BitMEX’s BBCHXBT index that currently comprises of the following constituent exchanges:
⅓ * Poloniex + ⅓ * Binance + ⅓ * Kraken
Current Market Performance of BCH Ahead of the Hard Fork
With the hard-fork event being only 5 days away at the moment of writing this, BCH is currently trading at $546 and down 6.17% in the last 24 hours. The digital asset had risen to a recent peak of $635 due to the earlier mentioned exchanges having announced their support for the event. Many crypto-traders are hoping the value of BCH might climb a bit higher in anticipation of the hard-fork.
However, the value of Bitcoin (BTC) has fallen to current levels of $6,400 after briefly exciting the markets when it reached $6,600 on Wednesday, November 7th. With a decline in the value of BTC, the entire market has also dropped considerably and could affect the price of BCH as we approach November the15th.
What are your thoughts on the Bitcoin Cash hard-fork event? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.