Insurance Fund for BitMEX Makes a Gain of 750 BTC From Recent Bitcoin Price Drop
As previously reported by Bitcoin Exchange Guide (BEG), the hot topic of the crypto sphere today is that of Bitcoin’s [BTC] recent price drop. It was found that the sole reason for said drop is due to a sell order that took place on BitStamp. More information has been disclosed regarding the sell order by AMB Crypto.
Turns out the sell order was a massive one, primarily that of 5000 BTC, hence the reason why many crypto enthusiasts woke up to a BTC price of nearly $6,100.
BitStamp commented on this even via a tweet which noted that due to such a “large scale movement” in their order book, an investigation has since been open, as seen below:
2/2: We closely examine every event that causes large-scale movement in our order book and have started an immediate case investigation.
— Bitstamp (@Bitstamp) May 17, 2019
AMB Crypto also referenced Twitter user, Dovey Wan, who has since shared that BitMEX’s reliance on BitStamp, which was the exchange to have been majorly impacted by the sell, and Coinbase, both of whom she argues has “shit liquidity”, and that their strategies need work. Due to said reliance, she said:
“20k+ BTC has been liquidated by a 5000 BTC dumping scheme.”
Another Twitter user, CryptOstrich also seems to address BitMEX by saying,
“Maybe @BitMEXdotcom should adjust the $BTC index specifications according to the liquidity (or at least volume) of the exchanges from which they use the price [to] calculate the index.”
It seems like BitMEX, dubbed:
“a leverage trading platform that trades a derivative of Bitcoin XBT,” has since shared that the price index is tracked on minute-to-minute basis and that, “BTC’s price is calculated from the last price at BitMEX Index.”
Table 1: Obtained from AMB Crypto, originally provided by @lowstrife
Although this heavily impacted one aspect of BitMEX, it seems to have worked in their favor when it comes to their insurance fund. As seen in the table above, this dump got their fund 750 BTCs. This is something that is currently being criticized by crypto fanatics, with many referring to BitMEX as “scammers”.
What are your thoughts on the way BitMEX leverages their assets? Let us know in the comments below.