Bitfinex's 'Hack Credit' Token Reaches All-Time Price High

Charles Bovaird
Feb 2, 2017 at 11:00 UTC
NEWS

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Investors who lost bitcoin in Bitfinex's high-profile August hack may be feeling more optimistic about the likelihood of recovering their funds.

The price of BFX tokens – the digital assets the exchange issued as a way to provide a 'notional credit' to users who lost funds in the attack – reached an all-time high yesterday, riding to $0.765 over the course the session, data from BFX Data reveals. At time of reporting, the price had crept a little higher to $0.768.

The tokens have enjoyed notable gains lately as investors continue to purchase them in anticipation of later redeeming them for dollars or equity in iFinex Inc, Bitfinex’s parent company.

After trading within a range of between $0.49 and $0.65 through the end of 2016, the price of BFX has followed a steady, upward trend, rising more than 50% from its recent low of $0.49 in December.

The better part of these gains have taken place since the latest redemption of 2% of the tokens on 10th January, after which, the digital asset saw its price surge more than 30%. The company said in a statement that it will continue to "expeditiously retire" more tokens via a variety of initiatives going forward.

As such, the price may be indicative of users' growing confidence in the exchange's ability to stay in business long term. After months of turbulence, the British Virgin Islands-based firm is now again the leader in BTC/USD trading among exchanges that charge trading fees, posting $10.5m in trades yesterday.

Green candles image via Shutterstock

Correction: This article has been updated to reflect that Bitfinex charges fees on trading. 

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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