CFTC Investigates BitMEX

Bitcoin exchanges have difficult times in the USA. In a lot of cases, strict regulatory requirements ensure that crypto and blockchain companies censor themselves from making their platforms accessible to Americans. This is also the case with BitMEX – at least that’s what people thought – up to now. Bloomberg Report About CFTC Investigation The Bloomberg magazine reported that the CFTC has been investigating the crypto options exchange for some time now. The investigations focus on suspected cases according to …

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The Art of Liquidation: Part IV – The Invisible Tentacle of the Markets

Welcome to “The Art of Liquidation: Part IV”. In the last few episodes we learned how various crypto derivative exchanges handle extremely large liquidations, which are potential threats to the market. OKEx and Poloniex socialize the losses, Bitmex has an insurance fund that has become systemically relevant itself due to its sheer size. What is Kraken’s approach? Maintenance Margin on Kraken Let’s look at the liquidation model of the exchange “Kraken”. Unlike the exchanges previously examined, Kraken does not have …

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Bitfinex Will Roll Out x100 Margin Trading

Bitfinex will roll out x100 margin trading for Bitcoin. In the whitepaper on Leo, Bitfinex’s own crypto currency, under the heading “Upcoming projects” there was already a hint that from June 2019 trading would be supported with a leverage of up to 1:100 for “selected customers”. Now Bitfinex’s CTO Paolo Ardoino has added to Twitter, the offer is obviously ready for launch.

So far, Bitfinex has limited itself to levers of up to 1:3.3. To the estimate: Who trades for instance Bitcoin (BTC) with lever 1:100, must shoot already with price movement of 1 per cent in the unexpected direction immediately capital or loses its employment.

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The Art of Liquidation: Part III – The BitMEX Insurance Fund

In the last two episodes we learned that some exchanges tend to socialize losses from big liquidations. The traders on the exchange have to take a haircut, the loss is carried by many shoulders and the exchange can keep on operating. That works, but it is not fair. Users that have not caused the loss have to take it. It reminds of the bailout 2008. The taxpayer had to bail out the system-relevant banks that were “to big to fail”. …

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BTX500: Bitcoin from $8800 to $85,000 to $6 With Enabled x500 Leverage

Bitcoin leveraged trading is risky. Very risky. But what happens when there is an exchange enabling their customers to trade Bitcoin with x500? Well, BTX500 “tested” this and the results where pretty clear: As loomdart reported on Twitter the price there went from $8800 to $85,000 to $6 within a matter of minutes. BTX500 claims to be regulated and licensed in Australia and that funds held are fully ensured by Lloyd’s of London. Even this is correct, to offer a …

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