BitMEX, or Bitcoin Mercantile Exchange, is a trading platform that through the intersection of a few experts in the domains of finance, trading, front end and back end web development experts. The company offers their users the ability to trade on margin, thus expecting a different class of investors, specifically, those who are of the sophisticated type. The platform allows their users to have up to at least a 100x leverage for the trading of Bitcoin and specific other alternative digital currencies for their futures contracts.
The company is based in tropical Seychelles Islands and has taken an unprecedented move of selling all of their Bitcoin Cash (BCH) holdings that were given to their consumers as part of the Bitcoin copycat’s formation in August. The platform has told it’s users that it will instead, give it’s users an equal portion of the pioneer cryptocurrency Bitcoin.
The trading platform did not provide intimate details on how much Bitcoin Cash they sold off, but it is interesting to note that the trading platform does command a significant portion of the trading of USD to Bitcoin on a worldwide scale. This means that the company retained a substantial portion of Bitcoin Cash in their portfolio.
Despite, the potential implications, it seems that the copycat currency, Bitcoin Cash, did not take a major hit in its price point over the past few days. Both Bitcoin and it’s copycat sibling Bitcoin Cash have seen the prices slump over the past few days. This impact may be because of regulatory interference on the part of the South Korean government.
From a market sentiment standpoint, the move by Bitmex should be a blow to the Bcash cryptocurrency.
In general, it seems that there are a certain amount of players in the market who don’t agree with the existence of Bitcoin Cash. Among them are Pirate Bay which states on their site BCH: Bcash: lol (in regards to accepted donations).
Actions like the ones committed by the platform make it where one wonders why a massive sell-off would happen to the alternative currency. Providing a sense of questioning if there was any legitimacy to the currency at all.
Bcash was forked from Bitcoin in August due to fundamental differences in the paths that should be taken by the communities in regards to the aspect of scaling their transactions. Bitcoin cash was forked to solve these problems.
Different additions and subtractions on marketplaces give the currency a sort of in – limbo state of existence.
The company posted the following via their blog
BitMEX completed the sale of all Bitcoin Cash (BCH) held on behalf of our users. Bitcoin Cash sale details:
- The amount of Bitcoin Cash a user is entitled to is determined by their Margin Balance on 1 August 2017 13:17 UTC, a few seconds after block 478,588.
- Bitcoin Cash to Bitcoin (XBT) Ratio: 1 BCH to 0.1707 XBT
- Users’ BitMEX Bitcoin wallets will be credited with the amount of Bitcoin they are entitled to.
The Insurance Fund was credited with 120.5321631 XBT due to its holdings of Bitcoin Cash.
If the move didn’t have any significant impact on the price of Bcash, then that could mean that there was still enough demand due to whatever reason for the alternative currency.