BitMEX has had a tendency to stay slightly behind on the current trends in the cryptocurrency markets, and with this new launch, they stay true to their mantra of lagging behind. Considering it is one of the oldest cryptocurrency derivative exchanges on the market, it is surprisingly late to explore the option of having their own token.
Some of you might wonder what are the incentives to launch an exchange token?
We can outline the main incentives as the following:
- Allowing for cheaper customer acquisition
- New collateral
- Tokens can be used for future investments and other venture capitals deals, in short creating close to “free deals”.
- Attract and retain talent that would prefer token projects due to the extra incentives
BitMEX has since the start of the year been bleeding customers and capital, most of which seem to have mainly migrated to FTX looking at the exchange data. They are put in a position where they recently have started new aggressive campaigns to try and retain and acquire new customers, the question remains whether this will be enough to capture new market shares amongst the tough competitions that they face today.
How to get BMEX Tokens?
The BMEX tokens will be airdropped to qualified wallets by the 1st of February 2022. You can qualify for the BMEX tokens airdrop through three different methods.
- Take advantage of the welcome offer.
Register as a new user and complete the KYC. Doing this, you will be eligible for 5 BMEX tokens and 10 USDT. You can register here.
- Earn BMEX by trading
This will likely be the most effective method of acquiring airdropped tokens. Up to 25% of your trading fees will be converted to BMEX tokens that will be airdropped by the 1st of February.
- Referral Offer
Get three friends to sign up and successfully undergo KYC. This will grant you 15 airdropped BMEX tokens.
BMEX Token Benefits
BitMEX has not released the white paper for the token yet. It is expected to be published before the end of January 2022, but here are some rough notes on what to expect.
- Trading fee discounts
- Better rate of return on lending products
- Early access to new products
- Access to merchandise and ticket raffles
- Free access to BitMEX academy
- BitMEX will buy and burn tokens every quarter
- Token holders will get lower rates on fiat on-ramp and the upcoming spot exchange
The most exciting thing for potential investors and traders is the trading fee discount and buy and burn program. Unfortunately, they have not yet released any specific information, so it will be challenging to compare BMEX to other popular exchange tokens such as BNB (Binance Exchange Token) and FTT (FTX Exchange Token).
If you are not interested in the airdrop phase, which happens on the 1st of February, they plan on making the tokens tradable on their spot exchange which will be available early Q” 2022.
The total token supply will consist of 450 million tokens that will be minted all at once and vested up to five years. 20% of the tokens will be reserved for their employees. BitMEX also states that 25% will be allocated for their long-term commitment to the token, what exactly this means is not clear at this time but we can expect more concrete information in their white paper.
Honest Crypto Recommendations
(1) If you are already an active trader
If you are currently actively trading any of the BitMEX products on other exchanges, it might not be a dumb idea to move some of that trading over to BitMEX to qualify for some free airdrops.
(2) Analyze white-paper and do a comparative analysis
Make an overview of other exchange tokens and the relevant exchange data to estimate the expected value of a BMEX token and invest/trade accordingly to your thesis.
All new token releases always create opportunities for those that do their own due-diligence.