Bitcoin exchange Bitfinex has announced 100% redemption of all currently issued and outstanding BFX tokens. This marks as the final redemption of BFX tokens that were created in August 2016, after which no tokens will remain outstanding.
With respect to the mechanics of the actual redemption, Bitfinex will be taking steps, most of which follows concerns that are settling outstanding margin positions. Since BFX tokens are trading close to their face value, the effects will be quite small. Also, those users who are in margin positions can close them out before settlement, or can leave them open, the release said.
The process and steps for the final redemptions include Platform-wide, where the company will pause withdrawals, wallet movements, margin liquidations, among others. Also, the trading and lending in BFX pairs will be halted, all orders and lending orders on BFX pairs will be canceled and the entire margin positions in BFX will be force-claimed. If there are any negative balances in BFX, it will be replaced with a negative amount of USD in the same quantity and in the case of positive balances in BFX, it will be redeemed for $1 per BFX token.
“Overall we expect the entire process to take approximately 25–35 minutes. Trading in all other pairs will continue throughout this process, with the temporary inconvenience of not being able to withdraw or move between wallets,” the release stated.
