BTC-e's Haircut Plan: Half the Balances and Free 'In-House Token' Trades
Last week, news.Bitcoin.com reported on the cryptocurrency exchange BTC-e announcing how the organization plans to repay customers who lost funds during the trading platform’s recent dealings with the FBI. Since then the exchange has revealed new arrangements which will introduce new tokens called BTCT and offer free trading for that specific market.
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On August 14 the cryptocurrency exchange BTC-e revealed new plans to redistribute the funds left on the trading platform after the recent U.S. law enforcement takedown. Last week we detailed that the exchange told all of its customers each one of them will deal with a “haircut loss” and BTC-e would create a new token to pay back the remainder of funds. A “haircut loss” essentially socializes the entire loss of funds among every BTC-e user who held funds on the platform. Basically, the exchange is taking the same path Bitfinex took back in August of 2016, when the Hong Kong-based platform was hacked for millions. Now the exchange has provided customers with a new update stating;
“We [BTC-e] have read feedback about our proposal to handle the recent situation, and we decided to revise our decision in favor of community opinions,” explains BTC-e’s latest post. “We believe that this is a good way out of the situation and is fairer for the holders of cryptocurrency and fiat funds on our exchange. For each currency, a recalculation will be made taking into account the currently available assets. Currently, 55 percent of funds are available, so 55 percent will remain in ‘currency,’ and 45% will be converted to our specific currency ‘token.’ For tokens of all currencies, free trading on a separate page will be opened.”
You can trade them at any price, but no more than their face value. We pledge to redeem all the tokens. You can also sell your tokens to other users and get currency, or wait and exchange tokens at face value.
BTC-e explains that users will need to comply with AML/KYC guidelines as the exchange will be working with a firm to process user verifications. Last week the exchange detailed that it was in the process of rebranding and relaunching a new cryptocurrency exchange. It’s currently unknown who has partnered with the trading platform or what the exchange will be called.
The new details also warn of scams and phishing sites pretending to be official BTC-e websites or representatives. The exchange says all of its “official information” can be found on the company’s Twitter page and its official account on the Bitcointalk.org forum.
What do you think about BTC-e’s haircut loss and BTCT token idea? Do you think they will be successful like Bitfinex, and repay their customers back? Let us know your thoughts in the comments below.
Images via Shutterstock and BTC-e.
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