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).
Also, BitMEX's Insurance Fund growth (an unbeatable benchmark) is roughly as predictable as Bitcoin's monetary policy. pic.twitter.com/kcZ9cTGX5c
— Zack Voell (@zackvoell) January 22, 2019
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.
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,”