Bitfinex, a leading cryptocurrency exchange, took a unique approach when it experienced a security breach in 2016. The breach saw the exchange lose Bitcoins worth more than 70 million U.S dollars based on the exchange rate during the hack. To repay its affected users, the exchange introduced a Recovery Right Token (RRT). In its early days, the RRT coin price stood at 0.07 U.S dollars.
The birth of the Recovery Right Token (RRT)
After its security was breached, Bitfinex spread the loss across all accounts. The exchange also created BFX tokens which it gave to customers at a ratio of 1 U.S dollar for every BFX token.
Within eight months of the security breach, all BFX token holders had their tokens redeemed at 100 cents on the dollar or exchanged their tokens for, directly or indirectly, shares of the capital stock of iFinex Inc. All BFX tokens were destroyed within this process.
The cryptocurrency exchange developed RRTs and distributed them among BFX holders that changed their tokens into iFinex shares.
Bitfinex noted that RRT tokens were advantageous:
In the event of any retrieval of the stolen property, and after any outstanding or uncontrolled BFX token holders have been reimbursed, recovered funds are distributed to RRT holders, up to 1 dollar per RRT.
However, only those who had signed up on the exchange before October 7 were eligible to convert BFX to RRT at a ratio of 1:1. For those who joined the platform between 7 and 31 October, the conversion was done at a ratio of 1:0.5 (1 BFX : 0.5 RRT). Additionally, those who joined the exchange between Oct 31 and Nov 30 converted their BFX tokens at a ratio of 1 BFX token : 0.25 RRT token. Anyone joining the platform after Nov 30 was not eligible to be awarded the RRT tokens.
RRT coin price on the Bitfinex exchange
Since the RTT token was tradable, Bitfinex listed it on its exchange on Oct 11, 2016. During the launch, the RTT token was not enabled for margin trading and margin funding. The RRT coin price, when pitted against the United States dollar, stood at 0.046 U.S dollars. The RRT coin price is also listed on the exchange with a Bitcoin comparison. Here, the RRT coin price has a value of 0.041 U.S dollars.
Under a 24-hour span, the RRT coin price has a volume of 1,368.81 U.S dollars on the USD pairing. With a Bitcoin (BTC) paring, the RRT coin price has a 24-hour volume of approximately 66.05 U.S dollars.
From the statistics, the RRT coin price has more than 90 percent trading on the RRT/USD pair and less than 5 percent volume on the RRT/BTC pair.
A Two-year RRT coin price outlook
Since its launch in October 2018, the RRT coin, as with other crypto tokens, has been fluctuating price. Let us look at the RRT coin piece from Feb 22, 2017, to Feb 22, 2019.
On Feb 22, the RRT coin price stood at $0.141 which was a decline since the coin had held a higher value at the beginning of the month. The downward trajectory continued until in mid-March 2017 where it recorded a price of $0.159
Between mid-March and late June, the RRT coin price hovered between $0.159 and $0.079. On Jul 3, 2017, the price of RRT went down to $0 before picking to $0.275 on Aug 25 and $0.372 on Nov 27. Since then, the RRT coin price has been falling steadily where it started 2018 at around $0.201.
The falling value picked up again on May 31, 2018, at $0.108. The RRT coin price closed the year at $0.037. The coin maintained the price until Feb 22, 2019.
In conclusion, the RRT coin price is holding rather steadily compared to other coins in the market today. However, being available only on Bitfinex limits who can trade the coin. As the cryptocurrency market sheds off the bear forces, the RRT coin price may also record higher gains. Maybe even higher than those it recorded towards the start of the 2017 bull run.