Bitmex Will Sell Users’ Bitcoin Cash Balance Rather than Support This Altcoin

Bitmex is one of the more popular cryptocurrency exchanges when it comes to futures trading. At the same time, the company also provides regular exchange services. They are one of the latest companies to issue their stance on Bitcoin Cash. New futures are being added to the platform, which is pretty significant. Users expecting a BCH balance, however, will be sorely disappointed.

It is good to see Bitmex clarify a few things regarding Bitcoin Cash. Adding a BCH futures market is pretty significant, to say the very least. Leveraged trading of up to 20x will be made available to all users. This new feature is live and can be accessed through the BCHX17 ticker. An interesting name, though, but the platform has some other oddities in this regard as well. Speculation is running wild when it comes to BCH right now, that much is evident.

Bitmex Doesn’t Like Bitcoin Cash all That Much

The big news comes in the form of not issuing BCH to eligible users, though. Unlike most other exchanges, Bitmex will not credit user balances. Instead, they have taken all BCH and will sell it in exchange for Bitcoin. It is a solid decision by the company, although not everyone will appreciate it. In the end, users will still get the value they were hoping for. It will be in a very different format than they expected, though. Selling an altcoin for Bitcoin without consent is a dangerous option to pursue.

This latter decision makes the futures market addition a bit suspicious. More specifically, the company will sell users’ BCH and drive the price down. At the same time, the futures market may push the Bitcoin Cash price up again. It is a very interesting situation, to say the very least. Letting users with over three months for their coins is not acceptable, though. Especially not if the plan was to sell the coins all along. This does mean Bitmex will not support Bitcoin Cash in any official capacity other than the futures trading.

When these large amounts of BCH get dumped on the market, interesting things will happen. It is possible a private entity will buy up this entire supply in one go as well. There are still some questions that need to be answered in this regard, to say the very least. Grayscale Investments will dump 175,000 BCH between now and February 2018 as well. An interesting future lies ahead, but things may get messy in the meantime.

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