BitMEX Loses The Leading Position To Emerging Competition
BitMEX loses the worldâ€™s leading crypto exchange position to the emerging competition after the CFTC probe rumors as we read in the latest cryptocurrency news reports.
The Seychelles-based company is really silent these days shortly after its named turned up to the regulatory probe. Last month, the Commodity Futures Trading Commission (CFTC) allegedly sent letters to the BitMEX crypto exchange for offering services to US customers without the required license. The report visibly prompted the companyâ€™s clientele into a panic since they started withdrawing their cryptocurrencies. As of July 24, BitMEX has reportedly withdrawn $125 million worth of money from its cold storage.
The continued distrust which was fuelled by the massive silence from BitMEX and some of the top executives on the CFTC matter appears to have cost the exchange its number one position. Over the past few weeks, the news platforms emerged with reports from all directions that offer similar cryptocurrency derivatives solutions which could be why BitMEX loses the battle. The US-regulatory cryptocurrency exchange Coinbase announced the Blade which will start live in about three weeks at the time of writing. Coinbaseâ€™s latest venture also managed to raise up to $4.3 million in funding from the top Silicon Valley venture capitalists. This was one of the signs that the BitMEX team didnâ€™t get. Blade now threatens to cut away a good portion of BitMEXâ€™s clientele because it will likely get the regulatory blessing by offering 150x leverage on BTC/USD. BitMEX on the other hand only runs its business while providing a 100x leveraging option under the current regulatory environment.
BitMEX is also now taking hits from the StormGain margin trading exchange which boasts up to 100x multiplier trading without the need of the users to KYC themselves. PrimeXBT, for example, is competing with BitMEX with its $100 million worth of daily volume and 100x leverage solutions. Binance and eToro also offer similar crypto derivatives solutions but the leverages remain small. As explained in the altcoin news, the CEO of BitMEX Arthur Hayes who debated the economist and professor Noruiel Roubini, reappeared on social media posting photos from his travel adventures promising to get back to work in September.
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