Check out the Size of BitMEX Crypto Exchange's Insurance Fund (Worth $76 Million) and What It Can Do

According to statistical data available online, it has recently come to light that Hong Kong-based trading platform BitMEX is currently in possession of large amounts of Bitcoin that it could potentially use to launch a number of 51 percent attacks against a host of different crypto coins (for months on end).

A Closer Look At The Matter

In relation the aforementioned matter, last week a host of independent analysts confirmed that BitMEX’s Insurance Fund contained a whopping total of 21,350 BTC (a figure that is estimated to be around $75.9 million.)

The fund has been growing steadily over the course of the past few months, especially since the price of BTC dropped from $6500 to $3500. Not only that, even data available on BitMEX’s very own website shows that way back on January 1, 2018, the fund had a meager balance of just 2720 BTC ($9.6 million).

BitMEX Now Has An Insane Amount Of Power Over The Crypto Ecosystem

Previously released BitMEX information has shown that the firm’s ‘Insurance Fund’ currently holds the power to attack certain altcoin networks in order to manipulate their transaction credibility.

On the matter, a Twitter user by the name of Voell was noted as saying:

“BitMEX’s Insurance Fund is currently worth 1 percent of Coinbase valuation, 2x Laszlo’s pizzas, 580 2018 GranTurismos, 3,800 hours of an LTC 51 percent attack,”

Other Statistical Data Worth Bearing in Mind:

  • It would cost around $18K per hour to launch an attack on the Litecoin network at current currency prices.
  • To attack the Bytecoin (BCN) ecosystem, a meager $557 per hour is required.

If that wasn't enough, on paper BitMEX also has the resources to initiate a 51 percent attack on Bitcoin Cash (BCH), Monero (XMR), Dash (DASH) continuously for a period of more than 365 days.

Final Take

In the wake of BitMEX’s growing market clout, many digital currency enthusiasts are now quite concerned as to how the firm plans on using its holdings from here on out. On the issue, an independent crypto researcher called Jack Mallers wrote:

“The fact that people put up with Bitmex’s products speaks to 1) the maturity and competence of market participants and 2) the state of ‘good’ exchanges in the space, or lack thereof,”

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Shiraz J
Shiraz is a multi-year cryptocurrency analyst and blockchain journalist residing in Melbourne, Australia. When he is not writing about the bitcoin ecosystem, he enjoys the art of meditation, playing the blues and traveling the world.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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