Decrypt’s Art, Fashion, and Entertainment Hub.
Cryptocurrency exchange BitMEX today published the lightpaper for its native token called BMEX ahead of its launch tomorrow.
BMEX will be airdropped starting from February 1, with the welcome promotion offering both new and existing verified customers a chance to collect the airdrop through the subscription to BitMEX EARN, the platform’s passive earning product.
Other ways to collect the BMEX token include trading activity and inviting other users. This is, however, a limited opportunity as the Phase 1 of the token airdrop will last from now and until early Q2 2022.
Starting from February 1, users can stake BMEX, with spot trading of BMEX tokens to start in early Q2 following its listing on the exchange.
…our BMEX Token Litepaper is now LIVE.
You can read it in full here: https://t.co/5isRhqZiI8
TL:DR? Here’s your recap.👇 pic.twitter.com/4nYcWMmvrg
— BitMEX (@BitMEX) January 31, 2022
BitMEX first announced the launch of BMEX in December last year. It now joins several other crypto exchanges that offer native tokens, including Binance, FTX, and Crypto.com, among others.
According to BitMEX, the BMEX Token will be at the core of the BitMEX ecosystem and BMEX holders can enjoy a variety of benefits.
“Crypto investors demand convenience, performance, and the freedom to choose a platform that best suits their needs,” reads the litepaper breaking down the purpose of the token.
According to BitMEX, the exchange is “pursuing an aggressive expansion strategy that will see us [BitMEX] launch a range of new products and features” to satisfy the growing demand in the market.
The BMEX token—an Ethereum-based ERC-20 token—will have a maximum supply of 450 million vested over five years, according to the litepaper.
Of this supply, 5% of the tokens are reserved for future airdrops, 20% for liquidity provision when BMEX spot trading is launched, 20% for BitMEX employee incentives and performance rewards, 30% for marketing and affiliate rewards, and 25% as a long-term reserve.
BitMEX users won’t be able to withdraw the token during the Phase 1 of the launch, the exchange said.
As for the benefits, BMEX holders will be entitled to trading fee discounts and preferential rates on BitMEX derivatives and spot exchange.
In addition, the token will grant increased staking rewards on BitMEX EARN deposits, early access to new products, as well as participation in Initial Exchange Offerings (IEOs).
“We’re building a true crypto investment ecosystem, of which trading is one of many capabilities,” BitMEX said, adding that “crypto is still growing, and much of the infrastructure that will enable it to be all encompassing, democratic, and more user-friendly has yet to be built.”
BitMEX in the news
Earlier this month, in a move aimed at getting a regulatory foothold in Europe, BitMEX announced plans to purchase Bankhaus von der Heydt, a 268-year-old German bank.
While the deal is yet to be approved by Germany’s Federal Financial Supervisory Authority (BaFin), the exchange is already teasing new products it plans to launch in the new future.
In addition to a spot trading exchange, these include an over-the-counter trading desk (OTC) and banking bridges to ease the movement of assets into crypto.
Later down the road, BitMEX said it is hoping to boost its product portfolio and the adoption of the BMEX token through the launch of a separate platform to engage with and invest in sporting clubs, social groups, Web3 projects, and metaverses.