BitMEX is the kid in high school who keeps mucking about and bunking classes, but still ends up with good grades. The Seychelles-based cryptocurrency exchange, known for its highly leveraged Bitcoin derivatives platform, in the past two months has had a number of trading halts, yet by the looks of things, it still is the most liquid exchange in the market.
Two months ago, on 12 March, as Bitcoin dropped by over 50 percent in less than a day, the cryptocurrency’s worst daily fall in over seven years, BitMEX went down. With massive volatility and leveraged trades, the exchange suffered almost $1 billion in liquidations in less than an hour alone, and the exchange’s Bitcoin holdings dropped by 38 percent in a single day.
This ordeal was classified by many traders as an implementation “circuit breaker,” but BitMEX put it down to a botnet attack. Either way, the exchange’s trading stopped, much to the dismay of the rest of the community.
Earlier in the week, on 19 May, BitMEX went down again.
The BitMEX Trading Engine is currently down. We’re working to bring it back online as soon as possible. Further updates to follow shortly. For official updates please follow https://t.co/fVa1FA9hNo
— BitMEX (@BitMEXdotcom) May 19, 2020
While the exchange called it a “downtime,” many others within the cryptocurrency space lost their trust in the exchange.
Hard to trade Bitcoin with any confidence while Bitmex is down. The casino is temporarily closed.
— The Wolf Of All Streets (@scottmelker) May 19, 2020
Regardless of BitMEX’s reasoning and that of their traders, in terms of daily trades, the exchange hasn’t budged. Data from skew markets suggests that BitMEX’s $10 million B/O spread based on the percentage of daily average dropped to 0.38 percent, its lowest point in one month.
This, despite the news of not one but two trading halts, revealing that traders are still plying their trades on the exchange, or the exchange’s traders are…
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