[2017-11-17]BitMEX is Dumping Bitcoin Cash and Crediting Users With Bitcoin

[didiksky]

The Hong Kong-based Bitcoin Mercantile Exchange (BitMEX) has announced it will sell all its customers’ airdropped bitcoin cash balances and distribute the proceeds in bitcoin form.

BitMEX to Dump Airdropped BCH

The exchange — which offers BTC/USD swaps but is best known for its futures market — made the announcement on Wednesday, explaining that because bitcoin cash was created through a “contentious hard fork” it will not allow users who received BCH at the time of the August 1 fork to withdraw the coins to their personal wallets:

“BitMEX does not agree with contentious hard forks, and does not accept the manner in which Bitcoin Cash was forked, or the lack of preparation or notice before the fork; we consider this a dangerous action that imposes unacceptable costs on end-users and businesses.”

BitMEX has not looked fondly upon attempts to fork away from the main bitcoin blockchain. The exchange had also taken a hard stance against the SegWit2x hard fork, which has since been called off. Prior to the fork’s cancellation, the exchange had stated that it did not intend to support SegWit2x coin trading on its platform, nor did it plan to distribute airdropped coins to its customers.

However, noting that bitcoin cash “still has value and popular demand” more than three months after the fork, BitMEX decided to credit users with the value of their airdropped BCH by selling the coins for bitcoin and then depositing the proceeds into users’ BTC exchange wallets. Over-the-counter (OTC) trading platform LocalBitcoins took a similar route in September.
Notably, BitMEX also announced that it has added bitcoin cash futures to its popular derivatives exchange, enabling users to bet on the future value of the cryptocurrency that claims to fulfill the true vision of bitcoin.

Liquidation Events Could Depress Bitcoin Cash Price

The BitMEX selloff could have a significant impact on the bitcoin cash price. BitMEX is the highest-volume cryptocurrency exchange, with daily volumes consistently cracking the $1 billion mark. Consequently, the dump could place significant downward pressure on bitcoin cash’s rally, which has carried the coin above $1,200.

Several other liquidation events are on the horizon as well. Grayscale Investments recently announced its intention to sell the bitcoin cash held by its Bitcoin Investment Trust (OTC: GBTC) — a fund that currently holds more than $1 billion in assets — and distribute a dividend to its shareholders. Several other services — most notably bitcoin exchange Coinbase — have yet to make BCH coins available for users to withdraw.

Nevertheless, bitcoin cash advocates can find a silver lining in the announcement because, although the selloff will likely depress the coin’s price in the short-term, it is tacit validation that bitcoin cash has proven its viability.
link:https://www.cryptocoinsnews.com/bitmex-to-dump-bitcoin-cash-and-credit-users-with-bitcoin/

[CryptoBry]

The dump is happening right now as the price of BitcoinCash per coin might be reverting back to the level before it surged ahead when the Segwit2x was cancelled. There had been many buyers who now changed their mind and some are even cutting losses when they entered BCH at a higher price. Well, that is what you got when you start to doubt the resiliency of the one and original Bitcoin. BCH has actually a good space in the cryptocurrency market but people behind BCH should reexamine their long-term strategies especially that in connection with Bitcoin. Both coins can co-exist with each other with no problem actually.

[Lucius]

I have to admit I'm surprised with the decision of BitMEX Exchange but I fully agree.Since most users will anyway sell BCH for BTC, exchange will do that for them and in this way will prevent to some users in the process of coin split lost BTC&BCH.Many fake wallets,services,hackers having very profitable times with this forks.

I do not know is BitMEX start to dump BCH,but by CoinMarketCap BCH is up by 7.63% in last 24 hours with current price 1119$.But this dump will certainly have an impact on the BCH price and even more if others follow with the same practice.

[error08]

Customers wouldn't be happy about BitMex decision.
If BitMex could managed sold bch at the peak, maybe their customers won't complain.
Seems they do not like hard fork at all, don't want to credit their customers either with bch or b2x.
And have tried to dumped bch after it pumped significantly over $1900 few days ago.

[darkangel11]

Customers wouldn't be happy about BitMex decision.
If BitMex could managed sold bch at the peak, maybe their customers won't complain.
Seems they do not like hard fork at all, don't want to credit their customers either with bch or b2x.
And have tried to dumped bch after it pumped significantly over $1900 few days ago.

Not necessarily. Remember that people who had BTC on the exchange at the time did not receive their forked coins. This means that some of them were not given a chance to sell early, when the price was much lower than it is now. This means that the exchange isn't doing anything wrong. On the contrary, it's selling BCC at current, high prices.
As for the crash we don't know how much BCC the exchange controls. Also, they don't have to sell it all at once but do it slow. It's not like they're on fire.