BitMEX has given over 1.5 million tokens to its users. The crypto exchange platform’s native token goes by the name BMEX.
BitMEX is looking to spark retail interest among consumers. The company is a leading crypto exchange platform. It mainly works to enable traders to buy and sell futures with the help of crypto assets.
Additionally, the company is a professional derivatives trading platform with low trading fees.
The exchange began in 2014 with its headquarters in Seychelles.
However, two reasons could deter investors from BitMEX. One is their lack of regulation, and the other is the involvement of its founders in criminal activities.
In 2021, the company had to pay over $100 million for anti-money laundering violations and illegally trade crypto in the United States.
What Are BMEX Tokens?
BMEX Tokens are Ethereum based tokens with a maximum supply of 450 million. Accordingly, BMEX Tokens can be minted only once. Tokens have a vesting contract (ownership/locked) of five years.
According to the platform’s founders, tokens will help reward holders and grow the BitMEX ecosystem. The company is looking to launch new products and form partnerships.
As per the Litepaper released by the company, token issuance will happen in two phases in 2022. In Phase 1, users can earn BMEX by trading on the platform until early Q2 2022.
The more users trade on the platform, the more tokens they can earn. Users can also distribute the tokens via their accounts.
In Phase 2, users can avail the tokens on the spot exchange platform of the company in early Q2 2022. The tokens will become tradable on the exchange platform and other partner venues.
Also, the tokens will be distributed in the following way. 5% will go for future airdrops of BMEX, whereas 20% will go for liquidity purposes after their spot exchange launch.
Furthermore, 30% are for marketing and affiliate benefits. The remaining 25% of the tokens go to long-term reserves.
Also, the platform plans to burn BMEX after every quarter. This will increase its value for token holders.
What Are The Benefits of The Tokens?
As per the lite paper, holders of the tokens can enjoy complimentary access to the BitMEX Academy class and private community channels.
Furthermore, they will also get a higher rate of return on their BitMEX EARN deposits. Investors with more than 500,000 tokens will get more sophisticated benefits. This will include an invitation to exclusive events, apparel of the platform, and VIP seats to sporting events.
Also, holders will start staking their tokens from February 1st, and spot market trading of BMEX tokens will begin in Quarter 2.