Today, Bitfinex proudly introduces trading on Chain Split Tokens (CST). The first such product of its kind, CSTs will allow Bitfinex customers to speculate on the value of incompatible ledger units associated with a potential forking event on the Bitcoin blockchain, specifically, the potential activation and mining of Bitcoin Unlimited blocks that are not compatible with Bitcoin Core clients. We are designating these CSTs as BCC (Bitcoin Core) and BCU (Bitcoin Unlimited).
CSTs will trade as BTC and USD pairs, initially without margin, and as will any other product with list, we will reevaluate that decision if there is sufficient liquidity.
Users will be able to create CSTs by “splitting” a bitcoin through the Token Manager (located in the Order Type drop down menu of the sidebar order ticket). Once split, the BTC will be removed from your account for each BCC and BCU added. Through the same Token Manager, you will be able to reverse this process at anytime, trading in equal numbers of BCC and BCU to extract BTC.
If there is no discernable and incompatible Bitcoin Unlimited blockchain emerges before midnight of December 31, 2017, then BCU will expire worthless and BTC will be given in exchange for each BCC holder. If, however, there is a discernable and incompatible Bitcoin Unlimited blockchain (which we will list under the ticker symbol BTU), then, as soon as we list BTU, we will exchange BCU tokens for BTU as well as retiring BCC tokens in favor of BTC. More detailed information can be found in the Chains Split Token Terms and Conditions.
We are planning a few additional enhancements including a realtime display of total CSTs as well as segregated cold storage for the bitcoins that have been split, which we will periodically settle to and from our hot wallet.
We hope that this innovation brings some much needed price discovery from the “economic majority” of the Bitcoin ecosystem as we try to find a resolution to the existential questions before us.