The hardfork between Bitcoin (BTC) and ZClassic (ZCL) led to the creation of Bitcoin Private BTCP, and per the coin’s whitepaper, later on, there was to be a coinburn. However, when the latter scheduled activity happened, it has led to two entities, BTCP developers and HitBTC exchange to trade accusations with the latter delisting BTCP due to the disagreements. The coinburn was to take care of the coins which hadn’t been moved or claimed by deleting them.
The whole dispute started with HitBTC delisting BTCP from its exchange the latter action has fueled the difference between the two. HitBTC accuses the team over at BTCP of not providing enough solution to take care of the coinburn. The solution was to take care of the movement of the funds before the actual coinburn takes place. Furthermore, in an attempt to shed light on the issue, HitBTC went ahead and released a blog dubbed “Explanation of the situation” with BTCP. Per the blog, HitBTC accused BTCP developers of not providing any documentation for handling the transactions cryptography or code.
Further on, HitBTC says the developer’s actions led to the creation of ecosystem instability and custodial risk. On the other hand, BTCP is accusing HitBTC of fraud and attempting to extort them. They further allege that the exchange held 58,920 BTCP coins secretly without the knowledge of the developers in a BTCP Segwit wallet.
Coinburn Took Place
Before initiating the coinburn, HitBTC had requested developers of BTCP to provide 58,920 BTCP which amounts to $17,600 in fiat currency in anticipation of losses expected after the coinburn. The latter was to cushion users from losses. However, on reaching out to BTCP developers, the latter said the new addresses coined out of the hardfork wouldn’t be affected by the scheduled hardfork. With the developers pointing that no new users will incur losses, HitBTC threatened to pull down the coins from its exchange if the compensation amount wasn’t paid. Come March 1st HitBTC made real its threat and delisted BTCP from its exchange.
HitBTC is the 15th largest exchange based on daily trading volume per CoinMarketCap figures. Other altcoins listed on the exchange include ZEC, XMR, DASH, ETH, BCHABC, XRP, LTC, DICE, PPC to mention but a few. Started in 2013 the exchange has done a lot to be the number one trading platform for crypto traders across the globe.