BitMEX will distribute tokens to users through February next year, with spot trading on the new BitMEX Spot Exchange expected in early Q2
On Tuesday, BitMEX announced the minting of its native token BMEX, with a planned rollout through February 1, 2022. Via airdrops, both new and existing users will receive the token in their BitMEX.com wallets, an offering the exchange described as a “token for true believers.”
BitMEX explained in a post that BMEX will have a maximum supply cap of 450 million tokens, with a significant portion proposed for investments to expand the ecosystem. The P2P crypto-products trading platform also said the utility token whitepaper is scheduled for publication at the end of January next year, and spot trading is expected in Q2 2022.
“The vast majority of BMEX will be used to reward users and grow the BitMEX ecosystem. An allocation of 20% is reserved for BitMEX employees and a further 25% for our long-term commitment to the token and the ecosystem,” the post said.
Users can receive tokens through several channels. Initially, the first 50,000 users who sign up for a new account and complete KYC procedures will be eligible to receive 5 BMEX tokens plus an additional 10 USDT. Referring three friends (who register and complete KYC) will grant users 15 tokens, and customers can also earn up to 25% of their monthly trading fees in BMEX for transactions on the exchange, capped at 50,000 BMEX per user each month.
Is the token launch coming too late?
Although the exchange, founded in 2014, has announced its native BMEX token, it appears to be joining the token trend later than many rivals. Several other exchanges, including FTX (FTT), Crypto.com (CRO), Binance (BNB), KuCoin (KCS) and Huobi (HT), have already issued their own tokens. Those exchanges enable users to reduce trading costs using native tokens, helping them attract trading volume away from competitors like BitMEX.
BitMEX has also been the subject of discussion largely because of its legal troubles in recent years, which have affected its competitive position. In October last year, the Commodity Futures Trading Commission (CFTC) announced it was pursuing the crypto exchange and its co-founders Arthur Hayes, Ben Delo and Samuel Reed for violations of multiple regulatory requirements.
The cryptocurrency exchange and derivatives platform reached a settlement with U.S. regulators, paying a $100 million penalty in August this year. The co-founders still face legal action over allegations of failing to implement anti-money laundering measures required under the Bank Secrecy Act.