It has emerged that the outflow of BTC on BitMEX has significantly exceeded the inflow. Is panic the right word to describe the case?
BitMEX is experiencing hardship. Recently, the Commodity Futures Trading Commission has purportedly begun scrutinizing its activity. The regulators are concerned about its usage in the U.S., as the exchange is not officially allowed in the country.
Following the disclosure, BitMEX began losing a substantial amount of funds. According to TokenAnalyst, the London-based blockchain data provider, the outflow of BTC on BitMEX constituted as much as $83 million. The inflow, on the other hand, barely reached $12 million.
See more at https://t.co/6AFFM1D63p
— TokenAnalyst (@thetokenanalyst) July 20, 2019
The discrepancy is big. More so, since respective numbers for Binance, for example, are drastically different: $54 million against $58 million.
The crypto community was quick to react. Some believe that this development is a sign of panic.
— Su Zhu 🦁 (@zhusu) July 20, 2019
However, not everyone agrees. @WhalePanda, for example, states that this is not “panic leaving.” Why? Because BitMEX has a lot of BTC on its platform. Hence “it’s more of a reminder for people who don’t actively trade their entire stash to withdraw (some of) it.”
It’s a normal reaction, I wouldn’t say this is panic leaving considering how much BTC they actually have on their platform.
It’s more of a reminder for people who don’t actively trade their entire stash to withdraw (some of) it.
— WhalePanda (@WhalePanda) July 20, 2019
A controversial exchange
To be frank, BitMEX has always enjoyed a dubious reputation. Thus the fact that it is subject to doubt and investigation is hardly a surprise.
What’s noteworthy is that Arthur Hayes has not commented on the outflow. In his last tweet (not retweet), he addressed Roubini. He suggested Doctor Doom listens to his “epic meltdown” in Taipei. To remind, Hayes and Roubini have both attended the 2019 Asia Blockchain Summit.
Hey @Nouriel I was looking at your recent tweets. The only ones that seem to generate any engagement are the ones about me and BitMEX. Take another listen to your epic meltdown onstage in Taipei. https://t.co/rFtKCbaRsk
— Arthur Hayes (@CryptoHayes) July 11, 2019
Besides, last year, BitMEX was accused of manipulating the price of altcoins, specifically ETH. Hayes fanned the flames when he described ETH as a “double-digit shitcoin.”
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