What are Chain Split Tokens
In early 2017, Bitfinex introduced a new type of digital tokens called the Chain Split Tokens (CSTs). The first such product of its kind, CSTs allow market participants to speculate on future fork events of digital currencies.
BCC and BCU
The first implementation was to speculate on the potential forking event of Bitcoin Unlimited. These two original CSTs were BCC and BCU and referred specifically to the potential fork between Bitcoin Core and Bitcoin Unlimited. Bitfinex designated these CSTs as BCC (Bitcoin Core) and BCU (Bitcoin Unlimited).
For more information, please view the Bitcoin Unlimited CST announcement.
BT1 and BT2
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.
For more information, please view the Segwit2x CST announcement.
What is Token Manager
CSTs come into existence when one or more tokens are converted using the Token Manager.
Note: The conversion is instantaneous and incurs no fees.
It uses the Exchange Wallet balances to allow users to merge or split CSTs to and from their constituent parts. In other words, it is the mechanism for creating and destroying the CSTs. Each CST in existence was created through this process by a specific user. Immediately after CSTs are created in the Token Manager, they are available for trading.
If you have any inquiries, please feel free to contact Bitfinex Support. We are always happy to help!