Community FAQ for BNX Token Split
This is an FAQ article to explain the recent token split: what it is and why we decided to do it. We will also provide a few relevant resources for users looking to convert their old BNX to the new BNX.
Last updated: 23 Feb, 5PM UTC+8 *The article will be updated regularly as and when we receive more relevant questions from the community.
- What is a token split?
A token split is the act of fractionating tokens currently in circulation in order to increase total supply.
For example, in the case of the BNX, the team is conducting a 1:100 ratio split. This means that a user who owned 1 BNX before the split will now own 100 BNX after the split (1 * 100). 1 BNX priced at $100 before the split will be priced at $1 after the split. In both cases, the total value of the BNX owned by the user will stand at 100 in USD after the split. The total value owned will not change due to the split, any changes are due to normal price fluctuations.
2. Why did BNX decide to split the tokens?
The BinaryX team decided to split the token as we experienced a substantial increase in user adoption in many regions of the world. To support the upcoming expansion of our products and welcome new users, the team concluded that the price of BNX per unit could be optimized.
The move is expected to lower the barrier to entry to the BinaryX ecosystem, consequently increasing the adoption of BNX in a broader crowd.
In January 2023, the team conducted a DAO vote to decide the split. The vote showed that 99.5% of the community supported the split. Evidently, there was an unanimous agreement between the community and the team, which resulted in the final decision to go ahead with the split.
Read more about the split in our official announcement here.
3. How do I convert my tokens?
We have a guide on converting your old BNX to new BNX here.
*Manual conversion required for DEX holders. Please refer to guide^
4. Why did the price plummet ‘99%’?
The price of a single BNX token before the split would equate to the price of 100 BNX tokens after the split. Depending on the UI of the wallet or exchange that you use, although their data may show a 99% drop in price after the split, the overall value of tokens you hold actually stays the same (subject to normal price fluctuations).
For users monitoring our price data through aggregators (CoinMarketCap, CoinGecko etc), please be assured that we are currently working with their teams to update the data so that it reflects the most accurate information post split. We appreciate your patience during this process.
5. CEX Conversion Timeline: Which exchanges have already conducted the split? (More to be updated)
Binance — Conversion completed. Trading open on February 23, 2023, 8AM UTC / 4PM UTC +8
Read the announcement here
Gate.io — Conversion Completed. Trading open on February 23, 2023, 9 AM UTC / 5PM UTC +8
Read the announcement here
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