Bitfinex Launches Chain Split Tokens (CSTs) Ahead Of The Merge! Another exciting announcement from a crypto exchange Bitfinex. On August 23rd, Bitfinex announced on its official website about ETHW and ETHS, which they call Chain Split Tokens (CSTs).
On August 23rd, iFinex, the company behind Bitfinex, announced the launch of Chain Split Tokens (CSTs) ahead of ‘The Merge’. ‘The Merge’ is a change in Ethereum from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The CSTs represent two tokens, ETHW and ETHS. The CSTs will allow users to trade on the potential Ethereum Merge.
Bitfinex is introducing new Chain Split Tokens (CSTs) that will allow you to trade on the potential Ethereum Merge ✅
— Bitfinex (@bitfinex) August 23, 2022
The exchange wrote, “We are designating these CSTs as ETHW (PoW) and ETHS (PoS).”
Bitfinex also stated three potential scenarios:
“1. In the event that there will be no consensus change on the current Ethereum (Ethereum Proof of Work chain), ETHS will expire [worthlessly], and ETH will be given in exchange for each ETHW holding; 2. In the event of a successful consensus change for Ethereum (Ethereum Proof of Stake chain) with no fork, ETHW will expire [worthlessly], and ETH will be given in exchange for each ETHS holding; 3. In the event of a successful fork and a successful consensus change for Ethereum, users will be credited with their respective ETHW and ETHS tokens.”
Bitfinex ended the announcement by saying these tokens will expire on December 31st, 2022. The exchange also reminded everyone to understand the risks before purchasing ETHW or ETHS.
Other Crypto Exchanges on ‘The Merge’
The recent announcement by Bitfinex means they join other crypto exchanges that previously stated their support for ETHW and ETHS, such as Poloniex. In this case, Binance announced a few weeks ago that they are not ruling out the support for ETHW. On the other hand, Circle and Tether announced their full support for the PoS.