Crypto futures and spot exchange BitMEX has delayed listing its Ethereum-based BMEX token because of market conditions, the company said in a statement Tuesday.
“We have made the decision to postpone the listing of the BMEX token on our spot exchange,” it said. “The reason is quite simple. Although we are ready to list BMEX, the present market conditions are not ideal, and we want to list the token in an environment that gives it the best chance to reward you, its holders.”
Crypto markets have taken a beating in the past few months amid systemic risks from within the crypto sector and concerns of inflation in the global economy. Bitcoin (BTC), the largest cryptocurrency by market value, has dropped by more than 70% from its lifetime high, and total market capitalization has fallen more than 55% from its mid-November peak.
BitMEX airdropped 1.5 million BMEX, its first native token, to users earlier this year as it looked to revive retail interest in an increasingly competitive crypto exchange market. The tokens were distributed based on a user’s activity on the exchange, as reported.
The Ethereum-based tokens are locked in a five-year vesting contract and have a maximum supply of 450 million. They will be used to reward new and existing BitMEX users and allow them to get discounts on trading fees.
In Tuesday’s post, BitMEX said it had sent “millions of tokens to hundreds and thousands of users” and that the tokens are already being staked to receive fee discounts, withdrawal refunds and other perks.
BitMEX said it is continuing to airdrop the token to its traders and new users. “More time to accrue; more BMEX for our users to earn,” the exchange said.
Some users, however, expressed their dismay regarding the decision on Twitter.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.