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The Many Unanswered Questions about BitMEX

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As most crypto exchanges are having a hard time retaining business, BitMEX is posting record profits that are yet to be declared but will be highlighted below. Looking at the recent analysis of Coinbase, we find that the popular American exchange is having a hard time maintaining a customer base during a bear market. The exchange has experienced a plunge in the volume of 83% since the highs of December and January.

According to recent reports, Coinbase’s volume in July was around $3.9 Billion in trades as compared to $21 Billion back in January during the crypto bull run.

The only exchange that has partially survived the bear market from the above report is Binance. The exchange’s numbers in July stood at $11.3 Billion in July and those of OKEx reaching levels of $2.9 Billion. We can blame the general decline in trade volume on regulatory uncertainty, constant FUD, ETF blues as well as a natural market decline after an impressive rally.

BitMEX

BitMEX was launched in 2014 but did not become popular in the crypto-verse up until around June this year, when traders realized they could make a killing shorting Bitcoin (BTC). The exchange offers perpetual contracts as well as futures contracts. The continuous contracts do not have an expiring date and have a funding rate that occurs every 8 hours. Futures contracts on the platform are settled at the contract’s settlement price.

This, in turn, means you can short the digital assets of Bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), Cardano (ADA), EOS, Litecoin (LTC) and Tron (TRX) no the platform. This then opens the floodgates for potential market manipulation from someone or an organization that knows what they are doing.

Limited or No Access in Some Countries

The terms and conditions for using BitMEX indicate that trading is prohibited in a few countries. One country stands out: the United States. Evidence of this can be seen in the terms and conditions for use which state that:

“…that trading access to or holding positions BitMEX is prohibited for any person that is located in or a resident of the United States of America, Québec (Canada), Cuba, Crimea and Sevastopol, Iran, Syria, North Korea, Sudan, or any other jurisdiction where the services offered by BitMEX are restricted.”

Could it be they are avoiding SEC scrutiny and the long arm of the American Law? Perhaps the financial instruments on BitMEX would not hold water with the SEC.

Profits, Expensive Offices, and Billionaire Founders

The exchange has most recently rented the most expensive offices in Hong Kong in a move that raises more questions as to how much in profits the exchange is making by offering the unique trading instruments on their platform. The exchange will occupy the 45th floor of the Cheung Kong Center. Their average leasing expenses will add up to around $500k per month.

To add to the question as to how much the exchange is making in profits, Ben Delo, a co-founder of BitMEX, was recently been named Britain’s youngest Bitcoin Billionaire aged at just 34.

The Billion dollar question that now arises is how much is BitMEX making in profits?

In the case of Binance, the exchange has stated that it is eyeing $1 Billion in profits for the year of 2018. Binance does not use the extra leverage instruments on BitMEX, but it has attracted a majority share of global traders. Checking coinmarketcap.com, we find that the daily trade volume of BitMEX is three times that of Binance.

BitMEX vs. Binance trade volume. Source, coinmarketcap.com

Connecting the Dots

Doing the math from the daily trade volume of both exchanges, BitMEX could be targeting $3 Billion in profits at the end of this year or even more.

Therefore, the question as to whether they are getting the funds to rent the best office space in Hong Kong can now be answered. We can also understand how Ben Delo is a Bitcoin Billionaire.

However, there is still the unanswered question as to why trading in the United States is prohibited and as to whether the exchange has protection measures for their users against market manipulation.

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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 Emily Morter via Unsplash

Bitcoin

The rise of the crypto casinos

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In the hyper-competitive world of online casinos, operators are always looking for ways to stand out from the crowd. The most usual methods include using distinctive branding, offering generous bonuses and making sure that they are on all of the major so-called affiliate sites where players can compare and contrast casinos’ different offerings.

But now a whole new generation of casinos are starting to emerge – ones whose key difference isn’t what and how you play, but more in how you pay.

The rise and rise of the cryptocurrency casino is seen by many as the next logical step in a world that is slowly but surely starting to accept that Bitcoin, Ethereum, Ripple, et al. are certainly here to stay.

Of course, it’s the first of these cryptocurrencies that has really grabbed the headlines and led the way with its meteoric performance in 2017 when it seemed like its $20,000 value was just the start of the story. Admittedly, this was short-lived and the value quickly fell back to a more sustainable level but, if it achieved one thing, it was to cement this exciting new kind of currency in the consciousness of the general public.

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Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

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The Bitcoin Revolution: Everything You Need To Know To Take Profits

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Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

Since entering the market almost 11 years ago, Bitcoin is still at the top of the global cryptocurrencies list. The current circulating supply of Bitcoin is at unbelievable 17,708,875 BTC. The market trend of the Bitcoin price has remained positive even when the currency did not maintain an uptrend. Cryptocurrency researchers believe that Bitcoin has the potential to grow up to a high of USD 50,000 within the next two years.

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