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What Part Did BitMex Play In The Ethereum Crash?

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Ethereum crash

A month ago, traders were confident that the value of ETH would not fall below $300. But the recent fake news that Goldman Sachs was dropping plans for a Bitcoin and Crypto desk, proved to be the catalyst the digital asset needed to fall even further to current levels of $192 at the moment of writing this. All year long, analysts had predicted that ETH would plummet in the markets due to congestion issues on its network. This led to many investors shorting the digital asset through BitMEX. But many did not expect the fall to be overnight as experienced in the last week.

BitMEX Accused of Manipulating Ethereum’s Price

Information around the crypto trader community indicates that the crypto exchange of BitMEX might have had a hand in the Ethereum crash. This was after a conversation on the exchange surfaced of a BitMEX official account (supposedly of Arthur Hayes) advising traders to keep shorting ETH. A screenshot of the conversation has been provided below:

BitMEX CEO’s conversation with users. Source, trustnodes.com

The word ‘punt’ used in the conversation above, is used in informal terms to hint at attempts to make fast profits from an investment regardless of its underlying fundamentals. This means the trader carries a high risk in the trade by speculating instant high returns. In the case of ETH, the decline was inevitable, but the shorts on BitMEX might have contributed to the digital asset falling further.

With respect to BitMEX being accused of manipulating the value of ETH, the platform has barred trading for residents of the U.S, Québec (Canada), Cuba, just to name a few. This then can be interpreted as the exchange evading the corresponding regulatory authorities such as the American SEC. This theory further pushes suspicions that their back-end operations are not as they seem. There could be more to this than meets the eye with BitMEX. Here is the chart of Ethereum ever since it was added to BitMex on August 2nd at around $400.

Chart courtesy of tradingview.com

The Decline of ETH Might Not Be Over

Many crypto analysts believe that the cryptocurrency bear market will not be over till late October this year. Other’s have postulated that we have a long 6 to 12 months of either a bear market or pure sideways movement. Both schools of thought agree that in the short term, Ethereum’s price in the market might drop as low as $155. This is without factoring in any other FUD or fake news in the crypto space.

When we add the prospects of bad news from the SEC postponing or rejecting the CBOE sponsored Bitcoin ETF, we can clearly see that ETH could be headed to a double-digit value very soon. The last time Ethereum was valued at under $100 was back in May 2017 when many of us had not even got into the crypto trading space. All we knew was that there was this new revolutionary technology called blockchain and its biggest advocate was Bitcoin.

In conclusion, the cryptocurrency exchange of BitMEX could have had a hand in further pushing the value of ETH lower than was expected. This is due to the various investment instruments on the platform that allows traders to bet against their favorite digital asset. Further looking at the situation from the point of view of the exchange’s CEO, Arthur Hayes, ETH was ripe for the picking as the preferred coin to short in the markets. With the market still a bit shaky, ETH might decline a bit further.

Check out the new Global Coin Report YouTube channel as we address all the highlights in crypto and the financial markets. With guests from all over the cryptosphere bringing you news, editorial, and of course, money making opportunities.

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.

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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