BitMEX announces native token BMEX ahead of launch of spot trading
The market will determine the price of each BMEX token upon the launch of the company’s spot branch in early Q2. Users will not be able to withdraw the tokens until the start of spot trading.
BitMEX has announced the launch of a native token called BMEX that will be used similarly to other crypto exchanges’ native tokens, such as the Binance Coin (BNB).
Holding the BMEX gets users access to trading rebates, better rates for the exchange’s Earn product, access to BitMEX’s trading academy, and other benefits that will come along the way.
BMEX reaches market upon launch of BitMEX spot trading
The BMEX whitepaper is expected to be published by the end of January 2022, followed by token distribution on February 1, 2022, via airdrop to eligible users.
BMEX will have a maximum supply of 450 million vested over five years, 20 percent of which is already earmarked for BitMEX employees and another 25 percent for its long-term commitment to the token and ecosystem, the firm stated.
BitMEX is looking to build a FOMO feel by offering 5 BMEX tokens and 10 Tether tokens to the first 50,000 new users who sign up before January 31, 2022, and complete BitMEX’s KYC protocol.
An additional 15 BMEX tokens are offered to those of get three other customers to do the same before the January deadline. Existing users can begin earning up to 25 percent of their trading fees in BMEX by simply trading on the exchange.
The market will determine the price of each BMEX token upon the launch of the company’s spot branch in early Q2. Users will not be able to withdraw the tokens until the start of spot trading.
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BitMEX going ahead with 5 new business segments
BitMEX is one of the first cryptocurrency exchanges to begin offering derivatives products like futures contracts. The Seychelles-based crypto exchange appointed a new CEO earlier this year with the mission to lead a new business strategy for the company with new business segments as a way to diversify the company and expand its footprint across the world: Spot, Brokerage, Custody, Information Products, and Academy.
BitMEX is building out the diversity of products on the derivatives side, with its derivatives offering remaining at the heart of the business, but Spot trading will be added as a new segment with the launch of full-service spot capabilities globally to provide users with a way to buy and sell crypto assets.
The cryptocurrency exchange will also establish a licensed brokerage to offer end-to-end principal, agency, and OTC trading services to clients, as well as a fully licensed and proprietary asset custody solution, information products, and an education service.
The company was founded in 2014 by Arthur Hayes, Samuel Reed, and Ben Delo. After years of regulatory issues, the cryptocurrency derivatives exchange has recently agreed to pay $100 million in a settlement with the US authorities over allegations it broke CFTC and FinCEN rules by allowing Americans to trade on the platform.
According to a consent order published by the Commodity Futures Trading Commission, five associated firms operating under the BitMEX brand were charged with conspiring to skirt money-laundering controls.
The CFTC estimates that BitMEX has facilitated ‘trillions of dollars’ in cryptocurrency derivatives transactions, received $11 billion in deposits and earned more than $1 billion in fees since beginning the operations in 2014.
