Cryptocurrency exchanges are seemingly convinced BCHABC will remain the predominant chain of Bitcoin Cash following the network split. Although things look to be in favor of this implementation, both Bittrex and Coinex are taking a very controversial stance. They let users trade BCHABC tokens as “BCH”, even though nothing has been permanently decided in this regard as of yet.
Premature Actions by Exchanges?
The Bitcoin Cash hard fork and subsequent network split have caused quite a stir. Two viable networks have emerged, as Bitcoin Unlimited (Status Quo) has fallen off the radar altogether due to a lack of miner and node support. As such, the focus now lies on both BCHABC and BCHSV. Both chains are still neck-in-neck for market dominance, and it would appear SV has been catching up to BCHABC over the past day.
With nothing decided in an official capacity, most exchanges maintain their wait-and-see approach first and foremost. The top platforms have stopped using the “BCH” ticker altogether, as that currency no longer exists under the previous network rules. It is now up to BCHABC and BCHSV to duke it out for the top position and become the new Bitcoin Cash. Another option is how exchanges will continue to trade both tokens under their current tickers, which would only make things a lot more confusing.
For some trading platforms, the decision has already been made. When looking at both Bittrex and Coinex, an interesting yet worrisome trend has emerged. Both exchanges still allow for BCH trading, even though that ticker should not be used at this time. Nor is this an indication users can still convert their old BCH tokens to the new versions through Bittrex or Coinex either. Instead, these exchanges trade BCHABC as “BCH”.
Update: Bitcoin Cash (BCH) deposits and withdrawals are now open. Confirmations have been temporarily increased to 20 for deposits. Bitcoin SV (BSV) balances are in accounts. https://t.co/EIcqG4pu6N
— Bittrex (@BittrexExchange) November 17, 2018
While one can justify that decision somewhat, the current network split situation makes it look like an unfavorable and somewhat dubious decision. If BCHABC were to lose its lead in terms of blocks generated and accumulated PoW, these exchanges would be in a fair bit of trouble. In that case, the “minority chain” would become Bitcoin Cash, whereas traders and investors would expect the ticker to belong to BCHSV. It is a premature decision which can backfire relatively easily.
There is also the question as to why both companies decided to take this particular course of action at such an early stage. More specifically, the network split has been completed less than 48 hours ago. A lot of things regarding the future of either blockchain remain unclear at this time, thus it would seem pertinent to effectively maintain the current separate price tickers first and foremost. Until one dominant chain emerges, that situation can be revised.
On Reddit, an interesting heated debate is breaking out for this decision by Bittrex and Coinex. Some people even go as far as claiming how there is “zero market demand for ABC.” A bit of an odd sentiment, primarily because it remains unclear if there will be a market demand for BCHSV. There are also a lot of concerns over how ABC mining pools manipulate the hashpower and “steal” it form miners without their knowledge. These are all very bold and unproven claims, for the time being. Even so, exchanges jumping the gun may find themselves in a pickle if their gamble doesn’t pay off.