BitMEX Exchange Users Withdraw Bitcoins Since DDoS Attacks In March

The Bitmex exchange users have been withdrawing bitcoins since the black Thursday in multiple droves and the exchange held 306,814 Bitcoins by April 9 but the number dropped to 222,025 which represents 38% decline in the Bitcoin holdings as we are reading further in the Bitcoin news.

This movement coincides with the recent trend of traders that move Bitcoins away from the centralized exchanges but with regarding the BitMex exchange users, the dropping trend is more pronounced. The exchange went offline for 25 minutes on March 13 and according to the exchange, they suffered two DDoS attacks but not all of the users believed this explanation. One crypto trader commented:

 “There has been increased competition to what Bitmex started back in 2014 with the most notable being ByBit & Deribit. It is not surprising that if one of these companies upsets its users due to server failure, no matter how short the disruption, people will start to consider alternatives.”

Another trader also claimed that the exchange liquidated the leveraged positions wrongfully during the outage that led to a loss of $150,000. Others considered that the short-selling should be banned eventually on the entire crypto market altogether. The founder of Celsius network and CEO Alex Mashinsky believes that the most recent ‘’flash crash’’ maybe what was problematic for the Bitmex exchange in the eyes of the users:

 “I think they lost the customers they had to liquidate in March during the flash crash. Also many other exchanges now offer exactly the same product and have many other features BitMEX does not have so it is harder for BitMex to rebuild the customer base.”

The popular YouTuber ‘’The Moon’’ posted another video explaining why he removed the BitMex video tutorial which was among the most popular videos on the channel. In the same video, he urged the followers to stop using the exchange. He explained that there are a few reasons that will make BitMex a bad choice which was the bad customer service and bad managing of the data:

 “And I think that fundamentally BitMex is not a good exchange to be trading on. There are much better exchanges out there right now. And these new BitMex alternatives, they are capitalizing off of the bad behavior of BitMex and the fact that people are leaving BitMex in masses.”