On the Market Impact of Exchanges’ Hard Fork Policies
▻https://hackernoon.com/on-the-market-impact-of-exchanges-hard-fork-policies-bb7f7924676c?source
Unpacking traders’ reactions to OKEx’s and Bitfinex’s treatment of #bitcoin Cash’s possible hard forkExchanges’ decisions regarding how to settle existing markets, which coins to claim and distribute, whether to make new markets in forked coins, and much more, can have profound market-wide impacts on the prices of related instruments.In this piece, I seek to illustrate this point using two examples surrounding Bitcoin Cash’s (“BCH”) possible contentious hard fork on November 15, in which it may fork into Bitcoin Cash ABC (“ABC”) and Bitcoin Cash SV (“SV”). These examples may also help traders think through the appropriate reactions to future policy announcements on future forks.(1) OKEx’s Last-Minute Early Delivery of BCH FuturesFirst, I share how a last-minute change in the settlement time and price (...)