As the impact of last week’s BCH fork is still being felt throughout the crypto market, we want to share with the SFOX community how we’re currently approaching the two forked blockchains.
Please note we are adopting the industry convention by referring to tokens of the Bitcoin Cash ABC protocol as ‘BCH’ and to tokens of the Bitcoin Cash SV protocol as ‘BSV’.
Here’s what you need to know about BCH enablement on SFOX right now:
- We’ve re-enabled trading of BCH.
- BCH deposits and withdrawals are not yet re-enabled, but they will be once we have determined the network is stable.
- We are continuing to monitor the viability BSV blockchain and will decide whether or not to enable it at a later date.
Monitoring the BSV Blockchain
We are holding back on BSV enablement and BCH deposit/withdrawal re-enablement because of the uncertainty presently associated with BSV fork, which poses risks to both the BSV chain and the BCH chain.
Leading proponents of BSV have explicitly said that they intend to continue attacking the BCH chain in order to take its hashpower, disrupt the chain, and altogether undermine it. Three examples highlight how this is currently disrupting the Bitcoin Cash ecosystem at large:
- Calvin Ayre, owner of CoinGeek, wrote today that CoinGeek intends to “continue voting with our sustained hash power until the rented hash [i.e. BCH’s hash] is gone.”
- Craig Wright has said that BCH will only “survive” if it updates to a new proof-of-work algorithm: “They have anything to do with SHA256d…. we come in wave after wave […] Only stopping when they are no more.”
- On the other side of the Bitcoin Cash aisle, Jihan Wu of Bitmain has publicly speculated about when he should dump his ~1 million BSV onto the market, which would presumably cause BSV to tank in price.
The disagreement between the two blockchain communities is creating uncertainty within the ecosystem. Moreover, the fork has current technical limitations, such as lack of relay protection, limited wallet support, and lack of support by major block explorers. These factors have led us to reserve judgment, for the time being, on whether BSV meets the standards for being enabled on our trading platform.
To help maintain smooth operations and to protect our clients from undue risk, we are keeping BCH deposits and withdrawals disabled. We will continue to monitor both chains as the situation develops, and we will keep our community updated via our blog and newsletter. If you have any further questions about SFOX and Bitcoin Cash, please reach out to [email protected]
Got another minute? Check out:
SFOX’s Approach to the Bitcoin Cash Fork
Learn about the Bitcoin Cash ABC/SV hard fork and how it fits into SFOX’s broader cryptoasset enablement philosophy.
The above references an opinion and is for informational purposes only. It is not intended as and does not constitute investment advice, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any cryptocurrency, security, product, service or investment. Seek a duly licensed professional for investment advice. The information provided here or in any communication containing a link to this site is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject SFOX, Inc. or its affiliates to any registration requirement within such jurisdiction or country. Neither the information, nor any opinion contained in this site constitutes a solicitation or offer by SFOX, Inc. or its affiliates to buy or sell any cryptocurrencies, securities, futures, options or other financial instruments or provide any investment advice or service.