In early 2017, Bitfinex introduced a new type of digital token - Chain Split Tokens (CST). The first such product of its kind, CSTs allow market participants to speculate on future fork events of digital currencies. The first implementation was to speculate on the potential forking event of Bitcoin Unlimited. These two original CSTs were BCC and BCU. blockchain, specifically, the potential fork between Bitcoin Core and Bitcoin Unlimited. We are designating these CSTs as BCC (Bitcoin Core) and BCU (Bitcoin Unlimited).
Then, in October 2017, the second pair of CSTs was unveiled. This time the speculation also involved Bitcoin and the potential for Segwit2x consensus protocol. These two CSTs are designated BT1 and BT2.
It is worthwhile to read and fully understand both the Bitcoin Unlimited CST announcement and the Segwit2x CST announcement. Then, please review the terms and conditions for the CST that you are interested in using.
The Token Manager
CSTs come into existence when one or more tokens are converted using the Token Manager. The manager uses your Exchange Wallet balances to allow you to merge or split CSTs to and from their constituent parts. This is the mechanism for creating and destroying the CSTs. Each CST in existence was created through this process by a specific user. The conversion is instantaneous and incurs no fees. Immediately after CSTs are created in the Token Manager, they are available for trading.