By
Chimamanda U. Martha
April 3rd, 2024
As soon as the 30-minute process is completed, all 100% of currently issued and outstanding BFX tokens will be redeemed.
Bitfinex has announced that it will conduct the final redemption of 100% of all currently issued and outstanding BFX tokens. Thus, all the BFX tokens created in August 2016 will be redeemed and no BFX tokens will remain outstanding.
Bitfinex has come to this decision taking into account a number of factors including a dramatic uptick in equity conversions, record operating results in March, and the decision to reduce the reserves in favor of this opportunity.
“We are tremendously grateful to all of our customers and new shareholders for helping us get to this point. By the end of this week, we will be sending notes directly to our shareholders with more information about what to expect in the coming months”, Bitfinex stated in the official announcement.
The company enumerates a set of steps and processes that will be taken at 20:00:00 UTC on April 3, 2017:
- Withdrawals, wallet movements, margin liquidations, and automatic settlement of negative balances will be paused while the settlement process will be running (this process is expected to last approximately 25 min).
Trading in BFX pairs will be halted. - Lending in BFX will be halted.
- All orders for BFX pairs will be cancelled.
- All lending orders on BFX will be cancelled.
- All margin positions in BFX will be force-claimed, even if users do not have sufficient correct collateral to do this. Accordingly, negative balances may be temporarily created in some cases.
- Active BFX loans will be closed and BFX will be returned to lenders.
- Any negative balances in BFX will be replaced with a negative amount of USD in the same quantity.
- Any positive balances in BFX will be redeemed for $1 per BFX token.
- Thereafter, normal operations will resume.
Most of what follows concerns settling outstanding margin positions. The effects are expected to be quite small as far as BFX tokens are trading so close to their face value. Users who are in margin positions may close them out before settlement, or they may leave them open.
Bitfinex warned about the redemption in advance and apologized as the process can cause the temporary inconvenience of not being able to withdraw or move between wallets.
Bitfinex expressed gratitude to its customers for lasting support: ”Once again, we are deeply grateful for the patience and trust of our customers and shareholders as we worked towards—and have achieved—full recovery in just eight months. Without the community’s support, Bitfinex could have easily become a footnote in the history of the digital token revolution, instead of a leader and trend-setter. Thank you.”