BitMEX, the cryptocurrency trading platform which supports leveraged crypto trading with perpetual and fixed-date contracts, is making news not only in the cryptocurrency industry, but outside it as well.
A South Park episode on cryptocurrencies and investment fraud which came out earlier in the year is being shared across social media channels in light of the exchange’s alleged role in contributing to the manipulation of the Bitcoin price. A group of Bitcoin investors traced a link between Bitcoin’s recent $400 spike in record time with BitMEX temporarily going offline, as traders in short positions were trapped due to Bitcoin’s price surge and their positions were liquidated. Rumors are that Bitcoin was pumped by large-scale investment groups while the exchange was temporarily down.
In the video, Foley tries to register a complaint with the police about how a “chicken man” on Twitter, who is also on the leaderboard of Bitmex, spreading false investment advice and ripping off his followers. The fraudster tells his followers to buy “the dip”, and when they go in for a long position with a 100x leverage, they get liquidated. The video from April talks about how the advisor made profits buying Bitcoin in a bearish market, and the video is again being shared to highlight how Bitmex may have exploited investors’ short positions this time.
The South Park episode circulated around the cryptocurrency community after the news of the firm’s move to one of the most expensive office spaces in Hong Kong was released. The company is reportedly shifting its headquarters from Hong Kong’s Victoria Harbor to Cheung Kong Center’s 45th floor, which houses companies like Bank of America Corp, Barclays Plc, Bloomberg LP, and Goldman Sachs Group Inc. The move will cost the company over $500000 in leasing expenses.
Despite everything, bright future for crypto round the corner
While this recent instance of alleged underhandedness from Bitmex may have a negative impact on the impending decision of SEC on proposed Bitcoin ETFs, the industry is positive about a new digital asset platform Bakkt, which has the backing of companies like Microsoft, BCG and Starbucks.
The platform from Intercontinental Exchange (ICE), which is expected to launch in November, is aiming to solve one of the biggest problems of the cryptocurrency industry – transparent and efficient price discovery. Bakkt, with its high quality security features will encourage traditional institutional investors to venture into the cryptocurrency industry, who have been avoiding it because of the lack of a trusted mainstream financial institution in the market.
Goldman Sachs, the major investment bank, is also planning to help Bitcoin gain mainstream exposure by starting cryptocurrency custody services. The company is deliberating about the possibility and has not yet revealed anything definitive about its plans.
In Australia, cryptocurrency exchange Cointree and billing platform Gobbill have collaborated to enable crypto users to pay their bills in cryptocurrencies, irrespective of whether the utility or service provider accepts cryptocurrencies or not. Gobbill will take cryptocurrencies from users of Cointree wallet and pay bills on their behalf, thus positioning itself as an intermediary between consumers and utility providers.