Chinese exchange Huobi conditionally supports Bitcoin Cash

Chinese digital currency exchange Huobi, one of the largest in the country has informed today that after receiving many users’ questions and concerns about Bitcoin Cash (BCC) and potential chain split on August 1st, the company has provided an updated statement about Huobi’s stance of Bitcoin scaling and Bitcoin forks as it related to users’ assets on the exchange.

The Huobi team said they will, as always, provide a full range of support for BTC trading as there is an industry consensus right now on Bitcoin scaling through BIP 91, which is successfully activated and running steadily without any fork. Bitcoin ABC, which is supported by a handful of companies in the industry, is another innovative attempt for scaling, it generates BCC, which is considered as a new blockchain asset by Huobi.

Huobi will provide accordingly support to BCC based on three basic influencing factors: first, the actual operating situation of BCC; second, a consistent standard for listing new digital assets; thirdly, the circulation of user assets.

Huobi support for the BCC asset and trading is as follows:

1. BCC asset

Since BCC shares the same blockchain network with BTC before it is to be mined, all users who own BTC will get BCC for free automatically.

If a client has BTC on Huobi before 20:20, August 1, 2017, users will be given the equivalent amount of BCC.

Huobi will suspend BTC deposits and withdrawals from the time BCC starts to be mined until the BCC network is stable. Huobi will issue another announcement to inform users the specific time or lifting the suspension. The exchange is recommending that users deposit BTC in advance to be able to trade, in case it is not possible to deposit BTC under urgent situations.

1. BCC trading

Since BCC is a new blockchain asset, there is high uncertainty in the short term and the market price may also be volatile. Huobi will issue another announcement around August 1, 2017, to elaborate when and how the exchange will launch BCC trading which aligns with the company policy on adding a new digital asset.

About Bitcoin Cash (BCC)

BCC is a digital asset generating from the Bitcoin ABC software. Bitcoin ABC is a full node implementation of the Bitcoin protocol. It has removed the controversial Segwit code, replacing it with a simple, sensible, adjustable block size cap. BCC will begin to be mined at 20:20, August 1, 2017 (GMT+8).

Despite some of the fear mongering, there have been no Bitcoin forks up until now and the New York Agreement has successfully locked in. On May 23, 2017, 58 countries from 22 countries around the world signed what is now known as the New York Agreement (Segwit2x). The signed group includes 58 companies located in 22 countries, 83.28% of hashing power, 5.1 billion USD monthly on chain transaction volume and 20.5 million Bitcoin wallets.

The group agreed to immediately support the following parallel upgrades to the Bitcoin protocol, which will be deployed simultaneously and based on the original Segwit2Mb proposal: Activate Segregated Witness at an 80% threshold, signaling at bit 4 and activate a 2 MB hard fork within six months. New York agreement was a result of a joint effort from both the industry and the community. Segwit2x received more than 80% hashing power support from July 19 to July 21, 2017, and was officially activated on July 23, 2017.

Source - External