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Bitcoin Cash users have moved BCH worth more than $ 257 million in cryptocurrency exchanges over the past seven days, ahead of the controversial cryptocurrency hard fork scheduled for November 15.
According to Chainalsysis chief economist Phillip Gradwell, over 1 million bitcoins in cash have been sent to cryptocurrency trading platforms over the past seven days to be sold for other cryptoassets, presumably as users expect volatility in BCH’s price during the ‘hard fork.
As reported by CryptoGlobe, the Bitcoin Cash blockchain is set to undergo a hard fork that could lead to a division of the chain. The cryptocurrency community is divided over introducing a new mining algorithm and allocating 8% of the bulk rewards from BCH miners to the Bitcoin ABC development team.
Those supporting the allocation rallied behind the Bitcoin ABC development team, while most of BCH’s other nodes and miners began reporting Bitcoin Cash Node (BCHN). Some in the BCH community oppose the 8% allocation as they believed it goes against the decentralized nature of cryptocurrency, and is even seen by some as a “tax” to the network.
While the data shows that miners control over 80% of the cryptocurrency’s hashrate signal for BCHN, the nodes are roughly even. Cryptocurrency exchanges have been quick to react to the controversial hard fork, with most revealing that they will provide users who hold bitcoin Cash at the time of the fork with the token corresponding to the other chain, if there is a split.
another token is created, however, some exchanges will apparently not support both tokens. Several major trading platforms have made it clear that they will only support the blockchain with the highest hashrate. Poloniex, which prior to the BCH and BSV hard fork supported futures for both currencies, this time did the same thing with the launch of pre-fork trading.
The $ 257 million worth of BCH transferred to cryptocurrency exchanges in the last few days could come from users trying to sell their tokens to escape volatility, or from users looking to receive an airdropped token in the event of a chain split.
The data seems to suggest that most users are selling their BCH, as the price of cryptocurrency relative to bitcoin is falling. CryptoCompare data shows that over the past seven days 1 BCH has gone from 0.230 BTC to 0.0165 BTC.
Featured image via Unsplash.
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