The well-known crypto-skeptic Nouriel “Dr. Doom “Roubini believes the big exchange platforms are” openly involved in systematic illegalities. ” He explained the arguments in a post on Project Syndicate, using the BitMEX platform as an example.
The Exchange allows traders to run a 100 to 1 leverage trading margin, charges large commissions, and forces deposits to be liquidated in a fund. Roubini said the estimated liquidations represent half of BitMEX revenue.
Previously, the economist pointed out that the platform bets frequently against its own users and facilitates the manipulation of prices on the crypto market.
BitMEX Platform, behind this weekend price correction?
Within a few days, the BTC lost nearly $ 4,000 of its value. On Sunday, July 15, there was a massive sale that triggered a major correction. Subsequent liquidation on BitMEX has reached over $ 164 million from long-standing traders.
According to Chico Crypto analyst, a whale or a group of merchants acted together to crash the market by introducing a massive sale of 15,000 ETHs on Bitstamp. This represented 15% of the total trading volume on Sunday – in a single transaction.
This command generated the price drop for ETH from $ 270 to $ 190 (a so-called flash crash).
“Balenels” will maximize profits
The BitMEX platform uses price data for contracts from three exchanges – Bitstamp, Kraken and Coinbase Pro. All three have less liquidity than BitMEX.
This decrease has been extended to BitMEX ETH contracts, which base their contract price on Bitstmap (33%).
The contracts were liquidated immediately and the decrease was also spread at Bitcoin, resulting in a Sunday price drop.
A similar event took place in May this year, with a Bitcoin flash crash on Bitstamp. And in this case, the BitMEX platform has benefited significantly from liquidation.
But other analysts are of the opinion that price volatility is normal given the existence of whales on the market. In fact, anyone with large cryptomonade deposits wants to get maximum profits and is doing so.