Monday, December 5, 2022

Huobi Pro Will Let Traders Keep All Coins After S2X Fork

Huobi Pro Will Let Traders Keep All Coins After S2X Fork

Huobi Pro, the crypto-only wing of major Chinese exchange Huobi, has promised users they can keep any coins resulting from November’s SegWit2x (S2X) hard fork. From this week, it will also introduce trading pairs for the potential new tokens.

Also read: Bitcoin: They Don’t Make ‘Em Like They Used To

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Huobi Pro: We ‘Have No Right’ to Choose

A statement issued on Wednesday said:

Huobi Pro does not have the right to, and chooses not to, pick any coins deriving from Bitcoin’s Segwit2x hard fork on behalf of our users. Therefore, Huobi Pro will support all coins deriving from Bitcoin Segwit2x hard fork and our users have the options to choose which coins to trade.

Huobi Pro will call the new coins BTC1 and BTC2, and will begin trading both in pairs with Bitcoin (BTC) starting 12:00PM Thursday 19th October, China time (GMT+8). The company is registered in Hong Kong.

Each new unit will initially be a 1:1 conversion from BTC, with prices thereafter giving an indication of which way the fork will go. BTC1 would indicate a “failed” fork, with Bitcoin continuing as usual. BTC2 represents a “successful” fork, which would see Bitcoin activate the “2x” section of S2X.

BTC Holders Will Receive Bitcoin, Forked Coin

After the fork happens at block 494784 (around 19th November) the platform will cease both trading pairs and cancel unexecuted orders.

Huobi Pro global logo It will then take a snapshot of users’ BTC (only) balances. The stronger blockchain will continue as “BTC” and Huobi Pro will name the “chain-split token”. Users will keep their “official” BTC and receive one minority-chain token.

BTC (and whichever coin becomes BTC after the fork) will retain its market value. The value of the chain-split token, a.k.a. the minority chain coin, will be set to zero.

However the exchange will then recommence trading against BTC, letting speculators decide whether the minority coin can still have value.

Suspending BTC Deposits and Withdrawals Before Fork

To secure balances and protect against replay attacks, Huobi Pro will suspend BTC withdrawals and deposits between 24-72 hours before the fork occurs. Resulting coins may only be withdrawn post-fork, and the exchange will enable both — regardless of which version has the stronger blockchain.

Unlike the original Huobi exchange, for years one of the world’s most popular, Huobi Pro does not trade or hold fiat currencies. It trades various pairs of BTC, Bitcoin Cash (BCC), LTC, ETH, and Ethereum Classic (ETC).

Following China’s recent regulatory actions against digital asset trading, major exchanges Huobi and OKCoin announced they would stop all trading services for local users by 31st October.

Would you trade a yet-to-exist forked coin? Please share your thoughts in the comments below.

Images via Huobi Pro, Flickr user Baer Tierkel

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