CoinEx produces a confusing and misleading statement about supposed Bitcoin Cash fork

Yesterday morning, CoinEx, a company whose CEO, Haipo Yang of ViaBTC, supports Bitmain on the ABC stance, issued the following statement concerning the Bitcoin Cash hard fork in November:

The statement has caused confusion among investors, who were otherwise led to believe by Bitcoin SV supporting teams that the competing client would not produce a split.

nChain and CoinGeek, two of the biggest mining backers of the Bitcoin SV client, categorically deny any willingness or attempt to create an alternate fork chain, and will instead be competing over Bitcoin BCH directly, by the very definition of ‘Nakamoto consensus’. That is, the consensus mechanism inherently built into Bitcoin, as referenced in the founding whitepaper.

CoinGeek has noted a number of factually incorrect statements and issues the following responses:

“Bitcoin-SV (BSV) is the altered version of Bitcoin Cash protocols.”

This point is blatantly false. CoinGeek would like to request from CoinEx, a definition of ‘Bitcoin Cash protocols’. By implying that Bitcoin SV introduces an altered set of protocols, then by definition, so does ABC with their November hard-fork. Any upgrade would be effectively doing this.

Interestingly, ABC lead dev also made a remark in similar vain, stating the following:

We are therefore led to believe the only possible explanation to this statement is that CoinEx believes that ABC holds literal ownership of the Bitcoin Cash (BCH) brand.

This is not too dissimilar to a time in 2015, when Bitcoin XT, a competing client to the ‘BitcoinCore’ client was incorrectly labelled an alt-coin. Despite being an optional fork of the client with slightly different network protocols, Bitcoin XT was misleadingly branded an alt-coin on all BitcoinCore backed websites and forums. We fear the implication here is similar.

The next point on CoinEx’s statement follows on:

“BSV is likely to bring a potential fork of Bitcoin Cash by causing incompatibility with Bitcoin Cash network and therefore create a new cryptocurrency asset – Bitcoin-SV (Token: BSV)”

If Nakamoto consensus rules that Bitcoin SV is the dominant client, then there is no “incompatibility”. In fact in such a scenario, the only incompatibility will come from non Bitcoin SV compliant nodes in that case, which would mean ABC in this case.

Fundamentally it is premature to specify which client is “incompatible” and which client will be majority or minority. Nakamoto consensus determines this, not exchanges. Bitcoin is not democratic. The vote isn’t 1 vote per person, but 1 vote per CPU (hash).

In response to the statement, CEO of nChain Group, Jimmy Nguyen makes the key point that “Bitcoin SV is not intending nor trying to fork off from Bitcoin Cash, and Bitcoin SV is not intending to create a new coin or token. Instead, as stated in its announcement, Bitcoin SV is a professionally-driven implementation of the Bitcoin full node software for use on BCH, and is intended to provide a clear BCH implementation choice for miners who support Bitcoin’s original vision. Bitcoin SV intends to compete for miners’ votes (under Nakamoto consensus) to be the winning BCH chain”.

It is worth also noting, that recently, yet another team announced a new BCH implementation, like Bitcoin SV, it intends to fulfill the original Satoshi vision. This is called “Protocol Client” and its github repository can be found here:

CoinEx has made no mention of “Protocol Client” however, despite this being another client with different rules.

Eli Afram

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
‘Mysterious team’ forks from BTC chain to create Bitvote

‘Mysterious team’ forks from BTC chain to create Bitvote

Yet another group has forked away from the legacy Bitcoin chain, otherwise known as SegWit1X (BTC).

Bitcoin mining pool ViaBTC informed its users last week that a hard fork will happen on the BTC chain on Jan. 20, 2018, at block height of 505050, creating a new asset called Bitvote (BTV).

“Bitvote (BTV) increases its blocksize to 8MB and adopts SegWit, which to a large degree has improved it [sic] transaction efficiency,” ViaBTC said on its website.

BTV supports CPU mining with CryptoNight proof-of-work algorithm to balance hashrate distribution and has a total supply of 21 million, with a block time of 2 minutes. The CryptoNight algorithm “responds to Satoshi Nakamoto’s vision of one-CPU-one-vote,” according to BTV’s backers who call themselves the “Mysterious Team.”

The asset, which claims to promote a sustainable development of communities via the Bitvote Foundation, promises to add features such as replay protection, Lightning Network, smart contract, and a block mark voting system in the future. The team also plans to enable BTV to Bitcoin Cash (BCH) transactions on its platform “at the scheduled time.”

BTV was first issued by Hong Kong-based exchange Coinex. There will be no pre-mining and additional issuance of the asset, the team said.

“Four million BTV are available for mining after forking, and it will take about 400 days to mine all of them,” according to the website.

For ViaBTC users, the mining pool said it has taken a “snapshot of every user’s BTC balance at the fork time,” which they will use to allocate BTCV tokens on the user’s CoinEx account “against a 1:1 ratio” on their ViaBTC BTC assets.

Invest with due diligence and caution

ViaBTC’s announcement left many questions unanswered, and the most pressing of which was, does the BTC chain need another fork, especially one that is backed by a mysterious team of developers?

The BTV team talked big about “making decentralization a real thing,” but provided scarce details on how they plan to do so. On its website, BTV promised to release pool software, miner and whitepaper at a “later” time.

The lack of information gave rise to concerns that the fork was not a real fork, just a marketing ploy to have customers move their BTC coins onto the exchange. As one user puts it: “Just so everyone knows, this coin is operated by Viabtc and will most likely be a pump and dump… Invest/trade with due dilligence [sic] and caution.”

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
CoinEx pioneers Bitcoin BCH-based trading

CoinEx pioneers Bitcoin BCH-based trading

Launched in December, CoinEx is a new player in the cryptomarket with a practical idea: make Bitcoin Cash (BCH) the base cryptocurrency against which all other cryptocurrencies will be measured.

The Hong Kong-based exchange offers a high-speed matching engine with its proprietary infrastructure, holding up to 10,000 transactions per second. The exchange has secure standards such as an encrypted frontend (with TLS), two-factor authentication, multi-signature strategies, and an optional cold wallet storage. The exchange provides an assurance of 100% reserves for all its users, alongside a suite of global-oriented services backed with worldwide liquidity.

Despite a perceived market crash in the recent week’s general decline, these falling rates are nothing new to the crypto world. Whenever the SegWit1x chain (BTC), also known as legacy Bitcoin, declines, leading cryptocurrencies like Bitcoin Cash usually react with a correlation, a result of covariance in the crypto market, a measure made whenever assets like the two are met with extensive risk. In a little over five months, Bitcoin Cash has proven to be a strong and reliable name in the cryptocurrency space. Newer platforms like CoinEx recognize these factors in their business strategy, and have thus resolved to make Bitcoin Cash their default cryptocurrency.

According to its trading page, all of CoinEx’s transactions are “BCH-priced.” This means that all other cryptocurrencies are based and paired with Bitcoin Cash. Even its site title’s built-in ticker displays BCH equivalencies. CoinEx is an engine whose backend is maintained and operated by ViaBTC developers, known by crypto enthusiasts for their strong BCH pool.

To date, CoinEx facilitates trading of BTC, Ethereum, Litecoin, Zcash, and Dash with Bitcoin Cash as its base cryptocurrency. The exchange also adopts a refined valuation model for listing new tokens.

With cryptocurrencies bouncing back after a brief series of corrections in the past few days, a BCH-first trading platform like CoinEx will benefit from the rise of Bitcoin Cash users and traders, further expanding the ecosystem’s adoption into different sectors. True to its micro-transactions ethos, the exchange prioritizes small withdrawals, which it processes in under five minutes.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.