CoinEx Plans to Create a 'Bitcoin SV' Token, Wright Calls It a Fraud - Bitsonline

CoinEx Plans to Create a ‘Bitcoin SV’ Token, Wright Calls It a Fraud

Sides in the debate over bitcoin cash’s evolution have further entrenched their positions, with exchange CoinEx posting a statement saying it would create a “Bitcoin SV” (BSV) token in the event of a hard fork. BSV, according to CoinEx, is a potential asset based on nChain’s Bitcoin SV protocol. However nChain chief scientist Dr. Craig Wright has criticized the statement, calling it “fraud”.

Also see: Ryan X Charles: ‘Craig Wright Is Satoshi Nakamoto’

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According to the September 1st post, CoinEx would create a BSV token and award them to users on a 1:1 basis with their bitcoin cash (BCH) holdings, based on a snapshot at the time of the fork — should such a fork happen.

CoinEx criticized Bitcoin SV for not including a replay protection mechanism in its code, which it called a security risk. A “replay attack” could occur when a transaction on two identical blockchain is broadcast to both chains, resulting in confusion which some in the past have exploited to drain users’ exchange wallets.

CoinEx also encouraged users to deposit their BCH into its exchange wallets in preparation.

Bitcoin no hard-fork SegWit2x S2x

Will There Even Be a Fork?

A contentious hard fork resulting in a new token isn’t a certainty. However BCH is due for an “upgrade” on November 15th 2017 when developers Bitcoin ABC plan to introduce several changes that some prominent players have opposed. Among other things, these include fractional “satoshis” (the smallest bitcoin unit), canonical transaction ordering (CTO), OP_ codes to extend BCH functionality, and zero-confirmation transactions.

Most vocal in their opposition to these alterations have been BCH developers nChain (particularly Wright) and entrepreneur Calvin Ayres’ BCH media and mining operation CoinGeek. nChain announced its own “Bitcoin SV” full-node protocol software it says represents the original “Satoshi’s vision” for Bitcoin, and making it more difficult to introduce new functionality to the blockchain.

The community is divided in its support for each side, presenting technical arguments and hurling insults to create an environment similar to the SegWit/non-SegWit debate that split Bitcoin (BTC) itself last year.

Craig Wright Steps Into the Ring

Wright responded to CoinEx’s announcement, calling it a “fraud” and denying a split (i.e: a new token) would occur.

CoinEx, ViaBTC and Previous Fork Predictions

London-based CoinEx is a subsidiary of Chinese exchange/mining operation ViaBTC. In July 2017, ViaBTC was the first to propose a listed asset called “Bitcoin Cash” (then BCC), should the upcoming Bitcoin hard fork result in a viable minority-chain token. After August 1st that token did in fact materialize, taking the name.

It was the first time the community had heard the name “bitcoin cash”, suggesting ViaBTC knew what would occur post-fork. Given traders’ and exchanges’ love of new tradable crypto assets, there is likely to be interest in the hypothetical token should it become a reality.

CoinEx logo


Oh no, Not Another Bitcoin

Many in the non-trading industry, particularly on the BCH side, may cringe at the thought of yet another asset calling itself “Bitcoin”. Both Wright and Bitcoin ABC supporters have expressed a desire that there be only one BCH after November, with the minority chain quickly losing miners’ hashpower.

Then again, many said that for Bitcoin (BTC) August 2017 as well, yet Bitcoin Cash lives on with a $9.7 billion USD market cap, and thriving developer/supporter community.

CoinEx is novel among digital asset exchanges in that it uses BCH as its base currency for trading pairs. That, along with promotional exercises that hand wallet holders a share of its mining rewards depending on the value of their assets, has made it popular with BCH fans and traders.

Will Bitcoin Cash hard-fork into two viable tokens? How likely do you think it is? Let us know in the comments.

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