BitMEX Launches BMEX Token for Active Users, US Not Eligible for Airdrop

Crypto derivatives platform BitMEX has launched its own token, BMEX, which will be airdropped to account holders by February 1, 2022.

In a post on Tuesday, the exchange announced the launch of the token that current and new active users can start earning.

The token is much like the native tokens of other exchanges, BNB of Binance and FTT of FTX. The exchange also noted that it would buy and burn BMEX tokens every quarter, much like other exchanges.

BitMEX will issue the litepaper for its token in January 2022, detailing benefits for token holders, which include trading fee discounts and preferential rates on its upcoming spot exchange.

The token is not available in the United States or any other restricted jurisdiction, and the users of these regions are further not permitted to transact in BMEX Token.

Users can earn BMEX based on the trading volume and the fees they generate on the exchange, with more use cases for BMEX tokens expected in the future. Currently, there is a welcome, trading, and referral offer to earn tokens.

In a separate post, the exchange noted that the total supply of BMEX would be 450 million tokens. The exchange will be using a “large majority” of the token to reward its users and grow its ecosystem.

25% of the BMEX token supply would be kept for “long-term commitment to the token and ecosystem,” while 20% is reserved for the exchange employees.

Founded in 2014, BitMEX introduced bitcoin futures to the crypto market. It was also the first one to introduce perpetual futures, which don’t have an expiry date, unlike the traditional market futures.

Once leading the Bitcoin derivatives market, over the years, as other exchanges entered the market, BitMEX lost its market share to competitors like Binance and FTX.

In the past 24 hours, BitMEX did $1.1 bln in bitcoin futures trading volume compared to Binance’s $22.54 bln OKEx’s $6.12 bln, and Bybit’s $4.38 bln. In terms of open interest, BitMEX sits at 8th palace at mere $620 mln while Binance yet again leads with nearly $5 bln followed by FTX ($3.38 bln) and CME ($3.27 bln).

Last year, BitMEX and its three founders were also charged by US regulators for unregulated derivatives trading and several other CFTC violations and reached a $100 million settlement in August 2021.