Bitfinex announces 100% redemption of outstanding BFX tokens

Bitfinex, a leading bitcoin exchange headquartered in Hong Kong announced today they will shortly be redeeming 100% of all currently issued and outstanding BFX tokens. This will be the final redemption of BFX tokens created back in August 2016. After these redemptions, no BFX tokens will remain outstanding; they will all be destroyed.

A combination of factors has led to this seminal moment for Bitfinex, including a dramatic uptick in equity conversions; record operating results in March; and, the decision to reduce its reserves in favor of this opportunity.

Bitfinex said they are exceedingly grateful to all customers and new shareholders for helping get to this point. By the end of this week, the exchange will be sending notes directly to shareholders with more information about what to expect in the coming months.

As for the mechanics of the actual redemptions, Bitfinex will be taking the steps listed below at 20:00:00 UTC today (April 3, 2017).

Most of what follows concerns settling outstanding margin positions, but because BFX tokens are trading so close to their face value, the effects will be quite small. Users who are in margin positions may close them out before settlement, or they may leave them open.

The steps and processes for the final redemptions are as follows:

The Bitfinex team noted:

“Overall we expect the entire process to take approximately 25–35 minutes. Trading in all other pairs will continue throughout this process, with the the temporary inconvenience of not being able to withdraw or move between wallets. We apologize in advance for any inconvenience that this may cause any users. Once again, we are deeply grateful for the patience and trust of our customers and shareholders as we worked towards—and have achieved—full recovery in just eight months. Without the community’s support, Bitfinex could have easily become a footnote in the history of the digital token revolution, instead of a leader and trendsetter. Thank you.”

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