OKEx Promises Immediate Delivery of All BCH Futures Contracts to Dodge Losses and Any Manipulation
Crypto exchange, OKEx announced Wednesday, November 14, 2018, that certain measures will be taken prior to Bitcoin Cash’s [BCH] long-awaited hard fork, which is scheduled to take place on Thursday, November 15.
Based on the announcement, the team involved decided it would be appropriate to deliver all BCH contracts earlier on due to the volatility that BCH is currently experiencing, along with possible manipulations and losses that may occur as well as the unpredictability of how the fork will turn out.
SPECIAL ANNOUNCEMENT: All Bitcoin Cash (BCH) futures contracts will stop trading at 9:05am and be delivered at 10:00am Nov 14, 2018 CET (UTC +1) due to the upcoming hard fork. We will provide a detailed explanation shortly.#OKExAnnouncementhttps://t.co/yh3p46tirc pic.twitter.com/oqioSUOUsf
— OKEx (@OKEx) November 14, 2018
The BCH contracts have been identified as being, BCH1116 (weekly), BCH1123 (bi-weekly) and BCH1228 (quarterly), which has been scheduled for delivery on November 14, at 10:00 AM CET(UTC+1). As for the overall trading, OKEx has since stopped, with no mention of when it will come back up.
Going back to the deliveries, it looks like the price will be determined by the “last traded price of the contract at 9:05AM Nov 14 CET (UTC+1),” adding that given the prices appear to be manipulated in any way, the required changes will be applied. In another post, OKEx explained the rationale behind choosing the last traded price as the delivery price for the following reasons:
“The underlying asset of OKEx BCH futures contracts (Bitcoin ABC) is not actually generated. There is no Bitcoin ABC trading pair with enough market depth and trading volume to compose an index for delivery.”
As for what’s to come after the BCH fork, OKEx revealed that their stance on either recreating BCH or BCH-fork contracts will be determined by the overall performance of the market after the fork.
Keep in mind, the announced changes were made soon after the post was published, and the renowned crypto exchange has since apologized for not providing earlier notifications due to the obvious fact that it could have created more opportunities for market manipulation to occur – which in turn could negative impact OKEx’s users.
This type of immediate change is supposedly only done in times where a hard fork is soon-approaching.