BitMEX In A ‘Very Strong Position’ As Customers Continue To Trust It With Their Funds

  • BitMEX has 34k BTC in the insurance fund and $2bln+ in customers’ assets with $1.5bln in open interest
  • Binance catching up quickly on liquidity – a key long term success factor for a derivatives exchange
  • Exchange remains in a very strong position but competition is real, its number of daily users has been decreasing

Total Open Interest (OI) across contracts on BitMEX currently is north of $1.5 billion. This is the number of open positions on BTC/USD trading pairs on the cryptocurrency derivatives exchange. Usually, whenever OI reaches $1 billion, increased volatility in BTC price is expected.

“Open interest is a proxy for leverage and it’s a useful metric … bitcoin traders often talk of $1B as a sell signal,” pointed out economist and trader Alex Kruger.

Crypto research firm Delphi Digital also tried to quantify the significance of the trend in its report from last year.

On looking into returns and frequency of price decline during all hours not spent above 1B from June to Sep. 2019, it found, “The frequency of declines shows how it’s basically a coin flip when looking at your average time period.”

Despite a challenging H2 19, BitMEX funds grew

Meanwhile, the exchange has $320mln in the insurance fund & $2bln+ in customers’ assets.

Popular Seychelles-based BitMEX continues to be trusted by its customers to keep their funds safe, with the balance in their cold wallet continuing to increase.

Crypto data platform Skew reports, “With 34k BTC in the insurance fund, the exchange most likely runs the most capitalised crypto-native clearing house in the industry.”

“Customers continue to trust BitMEX with their funds!” said Skew despite the exchange having a “more challenging” second half of last year.

BitMEX kicked off H2 of 2019 on a bad note when the US Commodity Futures Trading Commission (CFTC) launched a probe into the exchange in July. The CFTC considers cryptos like bitcoin commodities and has jurisdiction over their derivatives, as such requiring BitMEX to register with the agency to cater to traders in the US.

Arthur Hayes, CEO of the exchange that offers margin trading with up to 100x leverage told Bloomberg at that time,

“We continue to monitor all legal and regulatory developments around the world and will comply with all applicable laws and regulations; we reject any allegations of criminality, manipulation or unfair treatment of our customers, who are at the center of everything we do.”

But this wasn’t all, a few months later in November, the exchange accidentally leaked sensitive data of its users because the company failed to apply a blind copy to its mass email servers.

Other catching up with its liquidity

While BitMEX continues to face such issues, competition in the perpetual swap product it created started heating up as well.

In terms of liquidity — a key long term success factor for a derivatives exchange — although of XBTUSD contract remains the best in the industry, Binance has been catching up quickly since the start of the year.

[Also Read: Will XRP Be Dumped? BitMEX to Launch XRPUSD Perpetual Contracts with 50X leverage]

The world’s leading cryptocurrency exchange is also offering perpetual contracts and its liquidity is now getting closer to BitMEX.

To reward the liquidity providers, Binance announced this week that they will introduce negative fees for select trading pairs for those market makers whose 30-day volumes exceed 1,000 BTC.

BitMEX remains in a very strong position but competition is real

BitMEX’s volume, Skew found is in multi-billion on a daily basis but the increased competition means it “has to share the pie with other venues.” This means BitMEX “remains in a very strong position but competition is here for real!”

The effects can already be seen in its number of daily users which has been slightly decreasing.

“Until July last year, a day with <20k users was a slow day, >20k looks since August to be more of a strong day.”

Read Original/a>
Author: AnTy

$80 Billion Asset Management Firm Files First Blockchain ETF With China’s Security Watchdog CSRC

The China Securities Regulatory Commission (CSRC) has received an exchange-traded fund (ETF) listing application for a project that tracks blockchain-based stocks as underlying assets.

Called the Penghua Shenzhen Stocks Blockchain ETF, the application was accepted on December 24 by the CSRC and was filed by the Shenzhen headquartered asset management company Penghua Fund. What the ETF is trying to do is track and reflect how public stocks listed in Shenzhen and having businesses running in the blockchain industry are performing.

The First Blockchain ETF in China

According to a Thursday Shanghai Securities News report, if the CSRC gives final approval for the application, China would have its very first blockchain ETF for public investors. The Penghua Shenzhen Stocks Blockchain ETF arrived at the same time with Shenzhen Stock Exchange rolling out a Blockchain 50 Index compromising of 50 stocks that are new in the blockchain space and listed on the exchange.

Ping An Bank, One of the Names on the Blockchain 50 Index List

In a December 24 announcement, Shenzhen Stock Exchange said the Blockchain 50 Index tracks companies involved with the blockchain ecosystem and selects the top 50 according to their market capitalization. Ping An Bank, together with software or internet companies that have entered crypto mining, like Wholeasy, are on the index list at the moment. Other big names include Zixin Pharmaceuticals and Midea Group, as the firms in the index reflect a wide cross-section of industries and have many specializations.

7 ETFs Currently Operating in the World

Penghua manages more than 564 billion yuan, which is approximately $80.79, in assets. It holds 10 investment portfolios for national social insurance, 150 public funds and 4 investment portfolios for basic pension insurance. If its blockchain ETF application gets approved, the company will join the list of 7 other blockchain ETFs and will be next to Invesco-Elwood’s fund, which is listed on the London Stock Exchange. A June analyze of ETFs’ performance this year noticed their value surged very rapidly from January to May.

Read Original/a>
Author: Oana Ularu

Adaptive Capital’s Misir Mahmudov: Bitcoin Can Take the World Out of Debt, Helps Millions Save

Misir Mahmudov is the author and operations associate for a crypto hedge fund called Adaptive Capital. As the US dollar loses its real-world value, Bitcoin price models may become useless.

Bitcoin arose as a result of a massive financial crisis, and it has become a growing industry since then. Analysts and experts have continually made predictions about how the market will be used and how it will grow. Misir Mahmudov, the author and operations associate for the Adaptive Capital crypto hedge fund, recently remarked that he believes that Bitcoin’s structure is exactly what the world needs to pull itself out of debt, due to the permission-less nature of it.

On social media, Mahmudov stated that anyone who saved their BTC would have the means to bypass traditional methods of savings. He noted, “Bitcoin is the democratization of savings,” adding that there are many savers that could benefit from this action. “Today, you can stack sats & store your wealth in the scarcest asset. The ability to save wealth in bitcoin will bring millions of people out of debt.”

The latest statistics in the US show that the national debt averages about $70,000 per capita. The debt across the globe is so massive that there is about $12.1 million in debt for every Bitcoin that will ever come into existence.

Academics like Mahmudov have consistently supported Bitcoin as sound money, and many others have even discussed the benefits that it has over fiat currency and other assets. Saifedean Ammous, for example, wrote a book called “The Bitcoin Standard,” as he continually states that fiat currency is no more than representative of the opposite of the saving mentality.

Governments and central banks have the power to both issue money and inflate it at will, which Ammous believes fosters a culture that is based on spending and borrowing, rather than promoting savings. This mentality is referred to as “high-time-preference” mentality, in which consumers with fiat currency are taught that spending, rather than saving, is in their best interest, as it could end up purchasing less in the future.

Ammous blames John Maynard Keynes, one of the architects responsible for modern economic policy, for this damaging mentality. In his book, Ammous references a quote made by Keynes about his own advice and its long-term impact on consumers, “In the long run, we are all dead.”

The opposite is true for savers of Bitcoin, which has been created with a limited supply that cannot be manipulated. Analysts believe that the price models associated with Bitcoin will end up being less useful over time, considering their predictions that fiat currency will lose more of its own value. Since the creation of the Federal Reserve in 1913, the US dollar has drastically decreased in value in by 96%, as far as its real-world use.

Bitcoin has been praised as digital gold and has been admired by many consumers around the world as a way to protect their own funds from inflation. According to one crypto hedge fund associate, Bitcoin may be exactly what the world needs to get out of their growing debt.

Read Original/a>
Author: Krystle M

Bitcoin Scammers Target Head of $230 Billion Fund In Recent Facebook Scam for ‘Bitcoin Pro’

Ho Ching, the CEO of Temasek, a $230 billion fund, was the latest person to be targeted by scammers who are behind a famous Facebook Bitcoin scam called Bitcoin Pro. Ching’s image was used in Facebook ads for the crypto scam, a local media outlet reported.

In order to get more credibility for its fake investment, the scammers of Bitcoin Pro also used the logos of several reputable media outlets and promised unbelievably high returns on investment. Several fake testimonials are also used on the official site of the scam.

One of the ads details a fake call between Ching and an allegedly major bank head. In the call, Ching asks the bank manager to stop divulging secrets such as Bitcoin Pro, as this information should not be leaked to everybody. Previous incarnations of the same scam used people like Lee Hsien Loong, the Prime Minister of Singapore.

The scam is pretty simple, it is one of that old promises of “get rich quick”. To enter, someone has to give information such as credit card details, phone numbers and email addresses, which can be easily used to impersonate the victim later.

Right now, Facebook claims to be working to disable any accounts that may be linked to scammers. The social media platform is having trouble with scammers in many countries and is currently blocking profiles, but the scammers always find a way to appear once more.

According to Facebook, this is a clear violation of the guidelines and all pages associated with the scams and all ads will be removed as soon as possible.

“}” data-sheets-userformat=”{“2″:13057,”3”:{“1″:0},”11″:3,”12″:0,”15″:”Open Sans”,”16″:11}”>Latest Crypto Scams and Cybersecurity Updates

Read Original/a>
Author: Gabriel Machado