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Binance Shares Details of How It Will Handle Bitcoin Cash Hard Fork

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Tue, 11/03/2020 - 09:58
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Yuri Molchan
World's largest crypto exchange Binance supports the approaching hard fork of Bitcoin Cash and has explained how this chain split will be handled
Binance Shares Details of How It Will Handle Bitcoin Cash Hard Fork
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Bitcoin Cash fork is expected to happen on Nov. 15, and Binance has published a blog post with details on how it is going to handle this event that is very important for the BCH community.

The approaching hard fork on Nov. 15

According to the blog post, the chain split will take place between Bitcoin Cash ABC and Bitcoin Cash Nodetwo major BCH clients.

The operation is expected to result in the appearance of a new coin. However, no new token may appear, and Binance has published two expected scenarios as to what might happen as a result of the hard fork.

Binance to suspend operations with BCH

The platform has spread the word that deposits and withdrawals of BTC will be paused at 10 a.m. UTC on Nov. 15.

The team reminds users that they need to leave enough time for their BCH wires to be processed before they get suspended.

The hard fork will not affect BCH spot trading. The same goes for BCH margin trading. The option to borrow BCH will, however, be suspended.

Due to the extreme price volatility that often accompanies hard forks, liquidations are possible, the Binance team warns.

Leverage for perpetual BCH/USDT futures contracts and coin-margined BCH perpetual futures will be adjusted to 20x. That will occur on Nov. 3 at 10:00 a.m. (UTC).

On Nov. 9, coin-margined perpetual futures contracts based on BCH will be automatically settled and delisted.

Related
Bitcoin Cash Hard Fork to Gain Support from OKEx, BCH Holders Will Receive New Tokens 1:1

Two hard fork scenarios and coin distribution

Binance speaks of two likely outcomes of the fork. The first is that two rival blockchains will emerge with two separate coins.

BCH holders will be given the new coin as well, at a 1:1 ratio.

In the second scenario, BCH will remain whole and no new coin will appear. In that case, Binance will resume deposits and withdrawals as soon as it is possible.

Earlier, U.Today reported that OKEx also intends to support the BCH hard fork and will distribute new tokens (if the second chain and its own coins emerge) to BCH users at the 1:1 ratio.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.