Bitfinex introduced trading on Chain Split Tokens (CST).

The first such product of its kind, CSTs will allow Bitfinex customers to speculate on future fork events of the Bitcoin blockchain, specifically, the potential fork between Bitcoin Core and Bitcoin Unlimited. They have designated these CSTs as BCC (Bitcoin Core) and BCU (Bitcoin Unlimited).

CSTs will trade as BTC and USD pairs, initially without margin and they 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 their account for each BCC and BCU added. Through the same Token Manager, users will be able to reverse this process at anytime, trading in equal numbers of BCC and BCU to extract BTC.

If no fork occurs by December 31, 2017, then BCU will expire worthless and BTC will be given in exchange for each BCC holder. If, however, there is a fork, specifically Bitcoin Unlimited, then, as soon as they list Bitcoin Unlimited, they will exchange BCU tokens for Bitcoin Unlimited tokens as well as retiring BCC tokens in favor of Bitcoin Core tokens. More detailed information can be found in the Chains Split Token Terms and Conditions.

They 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 their hot wallet.

Source: Coincompare

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