- BitMEX crypto exchange is launching its native token dubbed BMEX, with airdrops scheduled for both existing and new users.
- The token will be unavailable in the US where the firm faced AML and KYC violation charges in 2020.
Crypto exchange BitMEX is launching its new platform-native token, BMEX. According to the Tuesday announcement, airdropping of the BMEX token will take place by Feb. 1, 2022. Both existing and new users will receive the tokens in their BitMEX wallets.
New users are required to register and complete KYC requirements to receive 5 BMEX tokens in addition to 10 Tether (USDT) stablecoins. Existing users, on the other hand, will receive tokens of up to 25 percent of their trading fees each time they trade. A referral program lets one recommend the platform to three people. Upon signing up and completing KYC, the referring person gets an airdrop of 15 BMEX tokens.
Users can acquire more BMEX tokens in Q2 2022. At that time, the token will be tradeable on BitMEX spot market and other selected third-party exchanges.
BitMEX launch of native BMEX token
The tokens have a supply cap of 450 million, vested over a 5-year period. BitMEX notes on its official website.
The large majority of BMEX will be spent to reward users and grow the BitMEX ecosystem. An allocation of 20% is reserved for BitMEX employees and another 25% for our long-term commitment to the token and ecosystem,
Currently, the token has no specific value. The exchange notes that this will be determined by the “market force” in early Q2 2022, when BMEX becomes tradeable. Users will only be able to make withdrawals of airdropped tokens once launched on the BitMEX spot market.
Other than being used to engage with BitMEX, the BMEX token will serve as an ecosystem reward token. Its holders will enjoy “trading fee discounts, enhanced yield on earn products, priority access to products, participation in swag raffles and many more.”
Also scheduled to take place next year, is the release of the exchange’s Litepaper in January.
No BMEX tokens to US citizens
Launched in 2014, BitMEX is one of the oldest crypto exchange firms in the industry. In late 2020, the exchange faced litigation with the Commodity Futures Trading Commission (CFTC). Allegations were operating an unregistered trading platform and violation of KYC and anti-money laundering guidelines.
The firm settled with the CFTC and FinCEN this August through a $100 million penalty. Additional terms of the settlement were that BitMEX ceases its services in the US until it gains a license from the CFTC or operates as a swap trading facility. For this reason, BMEX token will not be available to US citizens. The company has also prohibited access to the token by “sanctioned persons” and those in other “restricted jurisdictions”.