At exactly 01:00 UTC, popular crypto exchange of BitMEX initiated a scheduled maintenance. By 01:30 UTC, the maintenance on the platform had been completed. But during this 30-minute window, something wonderful had happened to the King of Crypto – Bitcoin (BTC) – in the crypto markets.
Moments before maintenance had started, Bitcoin was valued at $6,463. In the 30 minutes during the maintenance at BitMEX, Bitcoin had spiked to a new high of $6,816 according to coinmarketcap.com. This is an increment of 5.46% in 30 minutes. BTC would then drop to $6,713 after another 30 minutes, a slight drop of 1.5%. Since then, the King of Crypto has been struggling to maintain these values and is currently trading at $6,679 and up 3.57% in the last 24 hours.
BitMEX Resumes Trading Amidst Reports of Traders Getting REKT
BitMEX would resume trading at 02:00 UTC after the exchange experienced a large DDoS attack upon restarting Web Services. However, the damage had already been done with some individual traders, who had not anticipated the spike, losing on their trades by as much as 60%. One trader stated the following via twitter:
“[Thank you] BITMEX, I lost %60 of my balance! THANK YOU!”
Another would voice his disappointment as follows:
“Completely wrong you guys let all those orders that had SL get liquidated. You stated there was a DDoS attack which admitted that people could not log in to cancel orders yet you resumed trading and let everyone get liquidated. You completely robbed your customers.”
Another tweet would mock the event by stating the following:
“Bitmex announces partnership with Bitconnect”
So What Exactly Happened Today on BitMEX?
The following are some possible reasons for what happened during the one hour period BitMEX was down during maintenance
- Savvy Traders Buying when Maintenance Started and Selling When Done
This is one of those easy explanations. All crypto traders know that BitMEX can trade as much as 1 Million Bitcoin in volume per day and most of these trades are shorts on the platform. This then meant that once offline, the shorts on BitMEX would not exist and there was a chance to briefly buy and sell at a profit before the platform was up and running again.
- Short Positions Being Liquidated Leaving BTC to flourish
As was seen with one complaint on BitMEX above, the DDoS attack made it possible for trading to still continue even when traders were locked out of their accounts. Given the fact that they did not have time to cancel their orders, there short positions on BitMEX were liquidated at a loss leaving the market and profits open for traders who want to go long on BTC.
- Whale Manipulation Given the Nature of the Spike
This explanation is very much like the first one where traders had a one hour window to trade long on Bitcoin. This theory, however, puts forth the idea that it was Whales that pumped the price hoping for individual traders to jump in on the pump due to fear of mission out. The Whales would then exit, leaving the individual traders with a depreciating BTC.
- Planned DDoS combined with Manipulation
With this theory, we find the most ambitious plot to prolong the maintenance on BitMEX through a DDoS attack. This would then pave the way for whales to keep pumping the price and waiting for the right time to bail with considerable profits.
In conclusion, and on the bright side of the recent event, it was a relief seeing BTC at levels of $6,800 in a largely bear market and with a pending Bitcoin ETF decision by tomorrow, the 23rd of August.
For the latest cryptocurrency news, join our Telegram!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Is Bex500 an alternative to BitMEX?
An all around review of Bex500
Bex500 is a young but rapid-growing exchange, less adversarial than BitMEX, but with higher leverage than Binance, Bex500 has enough strings to attract many crypto traders.
Those dissatisfied with the old exchange, may find Bex500 exchange with a stable system with no manipulation or “overload”, pleasant UX, user-friendly tool kits, and around-clock customer service.
Bex500 says they are making crypto margin trading “easier” and giving you a better return.
Can they really achieve that? We conduct a comprehensive review as below to see if it is a trustworthy exchange
Question 1. What features does Bex500 have?
Bex500 offers perpetual BTC futures as well as three other cryptos including ETH, XRP and LTC, all paired against USDT. You may find Bex500 doing a good job aggregating most important features traders need for a robust trading experience with better return.
-A fair trade with no overload
Many traders are familiar with “overload” problem, which disables placing orders in peak trading times. It is suspected to be insider manipulations by exchanges which can cost users entire portfolios.
Bex500, with its unmatched TPS (claimed to be over 10,000 orders per second), ensures that the trading…
How Bitcoin Has Changed Online Gaming
We always hear how Bitcoin is great for the financial industry, how it can remove the middleman and help you save money while you spend money. How it can provide fast transactions at any time to any place, even when you wish to send money to someone on the other side of the world.
While all of that is true, it is important to remember that Bitcoin’s impact does not end there. The coin has already changed countless other industries, but one of the first ones that have accepted it with open arms — and therefore one that was changed the most — is the online gaming industry.
Bitcoin’s impact on online gaming
The first thing to note here is that digital currencies have found their use in online gaming thanks to microtransactions. However, it goes far beyond simply purchasing an in-game item from another player. Bitcoin’s biggest impact, without a doubt, concerns online gambling, sports betting, and similar activities.
Bitcoin brings security and anonymity
Bitcoin casino has become one of the new most popular places for an online gambler to visit, and for numerous reasons. Bitcoin brought increased security — to the financial industry, as well as online games. This is important because security is crucial for anyone who enjoys online gambling. It…
The Crucial Role of Cryptocurrencies & Blockchain in Modernising The Telco Industry
Blockchain has caused quite a stir in recent years. In fact, there’s a school of thought that firmly believes the digital ledger technology will prove to be the 21st Century’s biggest innovation.
There are a great many industries braced for the disruptive force of blockchain, and the sweeping benefits it can bring to telecommunications can’t be underestimated.
A blockchain is a decentralised, distributed, public digital ledger that’s fundamentally used to record transactions online. Every transaction that takes place is recorded across an extensive array of computers in a way that ensures that any individual record within the chain can’t be tampered with or retroactively modified.
Because of the virtually impregnable security associated with blockchain and the efficiency that comes with a fully decentralised ledger, there’s plenty of potential for the technology within the telco industry in particular – especially given the financial flexibility that comes with cryptocurrency transactions beyond borders.
Let’s take a deeper look at the important role that both blockchain and its associated cryptocurrencies can play in modernising and securing the telco industry:
The arrival of blockchain is causing a stir at Deloitte. The professional services giant has contributed tens of thousands of words on blockchain within its ‘insights’ network, and there are…