BitMEX has joined other major global cryptocurrency exchanges as it announced on Tuesday the launch of its own token, BMEX. The crypto exchange will airdrop the token to both new and existing users.
“You can earn BMEX Tokens whether you’re an existing or new user. We will be airdropping crypto tokens (BMEX) in your BitMEX.com wallets by 1 February 2022,” the exchange noted.
However, only the first 50,000 new users of the exchange will receive 5 BMEX tokens and 10 Tether (USDT) stablecoins after completing the know-your-customer (KYC ) process upon registration. However, existing users will continue to earn up to 25 percent of their trading fees in BMEX tokens at a 1:1 ratio, which is again capped at 50,000 BMEX tokens per user per month.
The crypto exchange will mint all 450 million units of BMEX tokens at once but will circulate them over a period of five years. In addition, the exchange will buy and burn BMEX tokens every quarter, a strategy that is also followed by other exchanges.
BitMEX Ecosystem
BitMEX is a popular yet controversial crypto derivatives exchange that settled with United States authorities paying hundreds of millions of dollars. All co-founders of the exchange are still facing criminal charges brought by the US Justice Department.
BitMEX already has plans to roll out a crypto spot exchange in the second quarter of 2022 and the native tokens can be seen as a preparation for that. The exchange is planning to use BMEX tokens for rewarding its user base and ‘grow[ing] 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,” the exchange detailed. Furthermore, BitMEX clarified that the BMEX tokens will not be offered or can be traded within the United States.
