Bitfinex offers new chain splitting tokens ahead of Ethereum Merge

ETHW and ETHS are the two new chain splitting tokens that will allow users to trade on the fork event.

iFinex, the company responsible for Bitfinex Derivatives, announced on Tuesday the launch of a new service offering available to users ahead of the highly anticipated Ethereum merger. The exchange now offers Ethereum Chain Split Tokens (CST).

The tokens available to users represent the two systems involved in the merger: ETHW, which is Proof of Work (PoW) and ETHS, which is Proof of Stake (PoS). Bitfinex has released the new trading tokens so users can trade on the potential forking event.

The coins will be available through the Bitfinex derivatives platform.

Bitfinex Chief Technology Officer Paolo Ardoino said that they released these new tokens to better prepare users for all possibilities related to the merger. However, the tokens come with an expiration date set at the end of the year.

Related: 3 Strategies Investors Could Use to Trade the Next Ethereum Merger

According to the exchange, there are three predictable outcomes these tokens can help users prepare for.

If there is no consensus change on the proof-of-work chain, ETHS will expire and ETH will be allocated for all ETHW holdings. However, if the consensus change is successful without a fork, the reverse will happen, ETHW will expire and ETH will trade for ETHS.

In the scenario of a successful consensus change and a successful fork, both ETHW and ETHS tokens will be credited with ETH.

The merger, which is due to take place around mid-September, is putting the entire industry on edge. Users are eager to see if the event will happen within the time promised by the developers and also if any disruptive side effects will occur.

The merger was