BitMex May Not Support Distribution of Forked Token After Ethereum Merge

Bitmex

Bitmex releases an update regarding user expectations during Ethereum Merge

Bitmex has announced that deposits and withdrawals of ETH, all ERC20 tokenties as and USDT will be affected during the Ethereum Merge. In a letter sent to Cryptoinfowatch this week, the cryptocurrency exchange made it clear that this is due to the anticipated difficulties and volatility on account of the Merge.

According to the email,

“Triggered by the Terminal Total Difficulty reaching 58750000000000000000000, following the Bellatrix upgrade, the much anticipated Ethereum Merge will take place between 12 and 19 September, 2022.”

Investor Protection A Priority

It stated that the move is to be sure that the assets of the investors are protected, adding that users should expect a suspension of withdrawals of ETH, all ERC20 assets and USDT across all networks.

It added that this is a function of its cross-network fungibility of the asset.

We will suspend withdrawals on ETH, all ERC20 assets and USDT across all networks, as a function of our cross-network fungibility of this asset.

Trading Activities Will Not Be Affected

The Bitmex release stated that trading activities on its derivative and spot markets will not be affected by the Merge and that its rules for the protection of indexes will ensure that fair prices and stable prices are provided during the course of the upgrade.

“Our Index Protection Rules will help to provide fair and stable mark prices based on the prices available from our constituent Spot exchanges. “

It further stated that the ticker ID of the ETH native asset will remain the same, just as all corresponding tokens built on the ERC20 blockchain of Ethereum.

Volatility Expected During Merge

Traders are advised to take cognizance of the expected volatility within the period in question and manage their risks accordingly.

BitMEX, according to the release, would do what it deems necessary within even a short space of time to protect market stability and integrity.

The exchange said,

“Following the Ethereum Merge, should a forked ETH PoW chain show economic value, we will evaluate listing this, as a separate asset. “

Distribution of New Token is Uncertain

It adds that such support is strictly based on the company’s discretion, adding that a snapshot of users’ balances at the time of the Merge will be undertaken in case they decide to distribute the forked coin.

According to the email, Bitmex said that there is no guarantee they would do that. Neither can they guarantee that doing so would be safe, desirable and practical.

Users who are not comfortable with the uncertainties around Bitmex Merge policy may withdraw their ETH prior to the Merge.

“If you have concerns and want to handle the impact of a potential fork directly then you are of course free to withdraw your ETH to self custody prior to the Merge.”

 

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Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.

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