BitMEX users decided to flee the platform which led to the most terrible month for the major crypto exchange shedding more than $525 million as we read previously in the altcoin news.
The data gathered by TokenAnalyst shows that the crypto exchange that offers up to 100x leverage, suffered a huge loss in net bitcoin outflows only in this month, machining the worst month by this metric alone. According to the crypto data analyst Ceteris Paribus, BitMex never experienced more than $100 million in net outflows in only four weeks. Even in 2018 when the price of bitcoin crashed, the company recorded net inflows for each month of the year. The newest happenings apparently are correlated with the US Commodity Futures Trading Commission and the opened investigation on the BitMex exchange.
According to the Bloomberg reports, one of the major points of the probe is because BitMEX doesn’t have a CFTC approval to offer crypto derivatives in the United States so they are unable to access the platform. Since it is one of the largest bitcoin trading platforms in the world, some analyst identified the investigation as a key factor that influenced the recent pullback and caused the BitMEX users to flee the platform. However, Ceteris Paribus noted that the outflows might not be leaving the crypto trading market since the margin leverage platform by Binance was launched in July and has gained steam increasingly.
In addition to BitMEX, the CFTC also started investigating the companies Tether and Bitfinex. Due to the regulatory issues, the US residents are shut out from using crypto products and services and the authorities are even more concerned that not enough is being done to prevent the bypassing of the roadblocks. The real reason why the CFTC is investigating BitMEX is unclear. Then things got even more heated up when Arthur Hayers and the crypto-hater Nouriel Roubini trashed his platform of being a scam. The debate that both of them had ended up in questioning the legality of the operations of the platform and he even stated as noted in the latest cryptocurrency news:
“…Despite the overwhelming evidence of rampant fraud and abuse, financial regulators and law-enforcement agencies remain asleep at the wheel.’’
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