BitMEX Is Still in the Hot Seat

October 27, 2020 11:20 AM
Crypto and Bitcoin Market Cap Story of Day

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CRYPTO MOVERS AND PRICES

 

 

 
 
BTC is decisively breaking out to its highest levels since the 2017/18 market frenzy. Volumes are on the rise and nearly double the 30-day average on the milestone move.

Crypto Story of the Day

Since the U.S. Government announced the BitMEX charges, open interest has declined, and several market distortions have emerged. We are providing you with an update.

Since U.S. Agencies announced charges against BitMEX, there has been no notable downtime, and in many ways, the business has appeared to be as usual. Following some changes to their executive committee, the platform has rolled out several new Quanto futures, been through quarterly index adjustments, and changed nuances such as the firm's quote-to-value trading rule.

That said, the headline sparked a notable decline in open interest. As a proxy, the venue's most popular contract, their XBT perpetual swap, has seen OI nearly halved in October. Furthermore, some BitMEX market distortions have become exaggerated. While BitMEX, for whatever reason, has always seemed to have a flatter term structure than peers, the discrepancy has become extreme this month (chart). For example, December XBT futures on BitMEX are currently trading around a $100 premium over their index value.

Deribit, however, a platform that hosts futures on all but identical indices to BitMEX, is seeing a $225 premium over the index value. All that said, open interest declines relative to other similar platforms may be temporary if we are correct in our assessment that the US is accelerating its pursuit of other offshore platforms.

A BTC holder set the record for the largest USD valued BTC transaction when 88,857 coins were moved yesterday. The transaction was valued at USD ~1.4B, beating the previous USD 1.1B set by Bitfinex. - link - CoinTelegraph.

According to their latest earnings report, Silvergate added USD 586M in new deposits from actors in the crypto space in Q3 of 2020. The quarter also saw the bank’s income from fees associated with crypto customers increase by 40% to USD 3.3M. Silvergate also saw a USD 13M increase in bitcoin-backed fiat loans bringing the total for Q3 to USD 35.5M. - link - @SilvergateBank.

Decentralized finance protocol Balancer, currently built on Ethereum, will also launch on blockchain network NEAR. The decision was made due to ‘at times prohibitively expensive’ transaction fees on Ethereum, which are financially and technically ‘burdensome.’ ’ - link - @NEAR.

Singapore-based bank DBS is launching a fiat-to-crypto exchange, called DBS Digital Exchange. The plans were revealed via a cached web page, seemingly posted in error, and since removed on the bank’s site. The new trading platform seems to allow users to trade BTC, BCH, ETH, and XRP against the Singapore dollar, Hong Kong dollar, Japanese yen, and USD. - link - @TheCrypto.

Crypto mining firm Marathon Patent Group has agreed to purchase an additional 10k Antminer S-19 Pro miners from Bitmain, according to a press release. According to the firm’s CEO, the new equipment will begin to arrive in January 2021, with full deployment expected by the end of Q1 2021. - link - @Marathon.

Toyota Systems, the automaker’s tech subsidiary, is experimenting with a digital currency provided by the Japanese exchange Decurrent. The firm is mainly exploring the use of the currency for welfare benefits. - link - @Decrypt.

JP Morgan’s digital currency, the JPM Coin, is being commercially used for the first time this week by a tech client to make international payments, according to the bank’s global head of wholesale payments, Takis Georgakopoulos. According to Georgakopoulos, that event and ‘other behind-the-scene moves’ have led JP Morgan to launch a new business unit dedicated to crypto and blockchain efforts called Onyx. - link - @CNBC.

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