The BitMEX exchange is launching its own token called BMEX. Who will be able to get it?
One of the oldest Bitcoin derivatives exchange called BitMEX is launching its own token. It will be distributed to both existing registrants and new users of the platform. BMEX announced the eirdrop of coins – that is, their distribution – this week, but the distribution itself will start on February 1, 2022 directly to traders’ wallets. We tell you more about the situation.
As a reminder, native cryptocurrency exchange tokens are quite popular. The most popular is Binance's BNB coin. It provides a discount on commissions when trading and also allows new cryptocurrencies to be obtained when staking.
The possibilities of native tokens don't end there. For example, the 1800 WOO stacking on the Woo X trading platform opens up access to trading without commissions. Accordingly, users pay nothing even for so-called market orders, i.e. buying the asset at the current price.
Now the BitMeX platform wants to join the token theme. And while many cryptocurrency fans thought the initiative was overdue, it will be implemented anyway.
How to get BMEX
The first 50,000 new users who register on the platform and pass the identity verification procedure (KYC) will each receive 5 BMEX and 10 USDT into their account. Already registered traders will be able to receive BMEX based on their trading volumes. The terms are simple: up to 25 percent of the commissions from their trades will be converted into BMEX at a 1:1 ratio. The maximum number of tokens for one account is 50 thousand BMEX per month.
As a reminder, KYC is the process by which the platform reviews a user's documents that prove their identity. We are talking about passports, ID cards and account statements to confirm the address of residence. Generally, it is possible to trade without KYC: we wrote about it in more detail in our article. Although now more and more exchanges switch to obligatory confirmation of identity. Otherwise users will not be allowed to place orders, that is trivial to trade.
In addition to the aforementioned methods, BMEX can also be obtained for free by inviting three friends to register. When they pass KYC, the user will receive 15 BMEX to their account.
Benefits of BMEX token from its announcement article
The maximum number of tokens is 450 million BMEX. They will be produced immediately and will be distributed over the next five years. Here’s a quote from the official BitMEX announcement published in The Block.
Most of the BMEX will be spent on rewarding users and developing the BitMEX ecosystem. A distribution of 20 percent of the tokens is reserved for BitMEX employees and another 25 percent for our long-term promotion of the exchange.
It is likely that the announcement of BMEX will attract a large number of new traders to the trading platform and provide an incentive to already registered users to actively trade on the exchange again. It should be recalled that trading volumes on BitMEX have fallen seriously recently, as the exchange was squeezed by competitors such as Binance and FTX.
A lawsuit by the Commodity Futures Trading Commission (CFTC) in early October contributed to this, among other things. The exchange was accused of money laundering and operating an unregistered trading platform. As a result, the cryptocurrency market responded to the event with a collapse.
BitMEX trading volumes
BitMEX will release detailed documentation for BMEX in January 2022 outlining the benefits for token holders. These benefits include discounts on trading fees and preferential terms for using the company’s future BitMEX Spot platform for spot trading, i.e. at market rates. It is expected to launch early in the second quarter of 2022. BMEX trading will first begin on BitMEX Spot, and users will not be able to withdraw tokens from their accounts until it launches.
BitMEX also said that the exchange will buy and burn BMEX every quarter and publish details of the process on its website. As a reminder, the largest cryptocurrency exchange Binance has been burning its BNB tokens in a similar way for quite some time. The same goes for popular platforms like FTX and Woo X.
BNB and Changpen Zhao
We believe that this initiative of the exchange developers will have a good impact on the activity of traders within the platform. After all, getting a discount on commissions for trades is very nice. And if they are profitable enough, some players will probably switch to another platform. At least temporarily.
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