OKEx, a popular cryptocurrency exchange, has given a special announcement about Bitcoin Cash Futures Contracts during the Hard Fork. However, the announcement was made after the completion of the delivery of futures contracts. OKEx explained that the BCH futures will stop for a moment to be delivered later. The original Twitter post was:
“SPECIAL ANNOUNCEMENT: All Bitcoin Cash (BCH) futures contracts will stop trading at 9:05am and be delivered at 10:00am Nov 14, 2018 CET (UTC +1) due to the upcoming hard fork. We will provide a detailed explanation shortly.”
The platform also published a paper aimed at clarifying the reason for the premature delivery of futures contracts. OKEx wrote here that the BCH market is extremely volatile due to the persistence of the range in the ecosystem. This can have a big impact, such as cascading settlement, explained OKEx.
Secondly, the outcome of the hash-war and the ecosystem gap is unpredictable, which makes it difficult for many exchanges to respond to this event. OKEx decided to take this step to save time and respond to the BCH market amid difficult data distribution and hard fork of the ecosystem.
Then, the question “Why was the last negotiated price chosen as the delivery price?” Answered by the stock market. I have pointed out two points when explaining his position on the subject. They have said:
1. The underlying asset of OKEx BCH futures contracts (Bitcoin ABC) is not actually generated.
2. There is no Bitcoin ABC trading pair with enough market depth and trading volume to compose an index for delivery.”
Commenting on the announcement, OKEx said that the early delivery of the future contracts was not because they feared that the announcement would lead to market manipulation, which would cause a loss for users. In addition, the platform indicated that it should postpone the announcement in the case of BCH, since it is currently an exception.
“Usually, announcements are made before”
Another user, Meraj Ali Mullik, who is an OKEx follower and blockchain enthusiast wrote:
“Plz add 5x leverage option in futures”
FUDelity posted another comment on the matter in a suspicious tone. The users mentioned:
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