Bitcoin Cash has a hard fork coming up on November 15th. Poloniex is already offering options on the tokens – although they don’t even exist yet.
The Hard Fork for Bitcoin Cash (BCH) is not due for a week (15 November) and yet Poloniex is already selling tokens for the new coins. Or the option to do so. How is this possible? Pre-fork-trading is the name of the strategy.
How does pre-fork trading work?
Hard forks promise new tokens; they update the consensus rules and then fork from the blockchain of a crypto currency. If you now have your private keys (from the old chain), you will also get “new” tokens later. As in the current case of Bitcoin Cash, this often results in price rallies due to upcoming hard forks. Because users hope to get so-called “free money” from the respective hard forks – after all, they get additional tokens from the fork.
Poloniex now offers an alternative to this system with Pre-Fork-Trading. If you don’t want to buy a BCH and still want to secure the privilege for the new tokens, you can do so with Poloniex. This is because the exchange, which is under the protection of Goldman Sachs subsidiary Circle, offers options on the new fork tokens. In this respect, users can secure the option on Bitcoin Cash ABC or Bitcoin Cash SV (Satoshi’s vision).
As you can see from the blog entry of the exchange, the BCH Hard Fork will be stopped for a short time between 14:00 UTC and 15:00 UTC during the 15th of November with regard to all actions related to BCH.
Bitcoin Cash Price
Currently, the rate for the crypto currency is 595 US dollars. Thus Bitcoin Cash stands with a weekly plus of 40 per cent and a monthly plus of 14.8 per cent. In the last 24 hours, the BCH price
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