OKex, the international arm of OKCoin which focuses mainly on futures trading, made a statement yesterday on the bitcoin segwit2x upcoming fork. The exchange says:
“The spilt token supporting Segwit2x will be named as BT2, the token derived from the original chain will be named as BT1. If the hardfork occurs then BT1 will be renamed as BTC.
From October 17th 2017 whether the hardfork occurs or not, OKex will support the conversion between BTC and BT1 & BT2. One BTC can be converted to one BT1 & one BT2 and vice versa. At the same time, BT1/BTC and BT2/BTC spot trades will also be live.”
If they do indeed mean October, then they are launching a futures market, but the mention of spot trades makes it somewhat confusing since there won’t be any actual BT1 or BT2 until November. They further say:
“If hardfork doesn’t occur, OKEx will cease the trading of BT1/BTC and BT2/BTC. The value of BT2 will turn to zero and users can convert their BT1 to BTC at a ratio of 1:1.
If hardfork occurs, OKEx will release BT2 based on users’ holding amount of BTC at a ratio of 1:1. In addition, all BT1 will be converted to BTC at a ratio of 1:1.”
In short, that statement on the surface seems to suggest that 1x will be named as BTC regardless of what happens. While Huobi, which usually tends to make identical statements as OKex, appears to be undecided in their recent announcement on segwit2x.
They too say they will split BTC into BT1 and BT2, while making it somewhat more clear they plan to launch a futures market by stating:
“From 12:00 PM, October 19, 2017 (GMT+8) to the end or the success of bitcoin Segwit2x hard fork, Huobi Pro will support conversion between BTC and BT1+BT2, i.e, one BTC can be converted to one BT1 & one BT2 and vice versa.
BT1 and BT2 respectively represent coins mined from 1MB blockchain and 2MB blockchain after the hard fork… Huobi Pro will launch BT1/BTC and BT2/BTC trading pairs at 12:00 PM, October 19 (GMT+8).”
So it’s a futures market in the style of Bitfinex, useful in providing more options for the market to express their views. But what happens after the fork is not clear. The exchange says:
“If hard fork succeeds, Huobi Pro will decide which coin is BTC and rename the new chain split coin… resume all the trading pairs against BTC on Huobi Pro and launch the new chain split coin against BTC pair.”
That suggests they have not yet made a decision as to which coin will be named BTC, with the exchange further saying if the hardfork does not occur or fails, they will:
“Cease BT1/BTC and BT2/BTC trading. If BT1 is chosen to be BTC, then we will convert BT1 balances to BTC balances and turn BT2 balances to zero. If BT1 is chosen to be BTC, then we will convert BT1 balances to BTC balances and turn BT2 balances to zero.”
If the hardfork fails there won’t be much choice as to which is BTC since there will be only one chain. While that second sentence suggests they either mistakenly repeated the same sentence, or they meant vice versa, they will convert BT2 balances into BTC and turn BT1 balances into zero.
Overall, except that both exchanges will launch a futures market for BT1 and BT2, we’re not any clearer on their position regarding labeling after the fork.
Nor is it clear there will actually be two chains. The minority chain can’t quite survive in bitcoin without some protocol level modifications, but if its price is far higher, then it might gain far more hashrate too, thus making it the majority chain.
Whether its price is higher or otherwise will probably, at least to some extent, be determined by whether it’s called BTC or not. OKex appears to suggest so, while Huobi seemingly hasn’t made a decision. But both statements are fairly confusing, so we’ll have to wait for further clarification.