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After Recent Scandals, the Crypto Exchange Markets are Shifting

After Recent Scandals, the Crypto Exchange Markets are Shifting

In a market that has grown at a breakneck pace over recent years, crypto exchanges have been through their fair share of issues. From exit scams to hacks to allegations of market manipulation - the list goes on. However, seismic events have shaken the crypto markets over the last month to the extent that we’re now seeing a shifting landscape across the exchange markets. 

On September 26, KuCoin confirmed via its blog and Twitter account that it “had detected some large withdrawals.” After the discovery that the exchange had been subjected to the third-biggest attack in crypto history. The thieves took a total of $281 million in Bitcoin, Ethereum, and various ERC-20 and TRC-20 tokens. 

Since the incident, KuCoin has been working with the projects that listed its tokens to reinstate them to their rightful owners through token swaps and other means. KuCoin representatives have remained tight-lipped about the incident, only stating that they have identified suspects, and the matter is now in the hands of law enforcement. 

Elsewhere, exchange giant OKEx suddenly announced on October 16 that it was halting all withdrawals, amid a swirl of rumors. The announcement confirmed that “one of our private key holders is currently cooperating with a public security bureau in investigations where required” and implying that the exchange couldn’t access its own wallets in the absence of one individual. It later emerged that the individual in question is Star Xu. The price of OKEx’s token, OKB, fell by nearly 30% following the news. 

Source: Coinmarketcap

At the time of writing, OKEx has reinstated some functionality. However, users are still unable to withdraw their holdings. 

Derivatives Traders Vote with Their Feet

The derivatives markets also took a blow in recent weeks. For the past year, the US Commodities and Futures Trading Commission has been investigating BitMEX for offering unregulated trading to American users. 

On October 1, the Department of Justice confirmed it was bringing criminal charges against the exchange’s three co-founders along with one senior executive. They stand accused of “willfully failing to implement and maintain even basic anti-money laundering policies.” 

It was the culmination of a challenging year for the Seychelles-based firm, which had struggled to recover open interest levels following March’s “Black Friday.” As the price of Bitcoin fell rapidly, BitMEX went offline, meaning traders couldn’t exit their positions and were force-liquidated. 

Open interest in Bitcoin futures plummeted rapidly across the board, but in general, it has recovered well along with the price of BTC. However, BitMEX has suffered. In March, it had over $1.5 billion in Bitcoin futures open interest. By mid-October, this was hovering around the $600 million mark. 

Source: Skew.com

Rival Exchanges Step Up

So, if the overall levels of open interest in Bitcoin futures have remained buoyant, where are traders going? The exodus from BitMEX has provided a significant opportunity for its rivals to gain a more prominent place on the market. 

Singapore-based Bybit is one obvious winner. The exchange launched in 2018 and has grown to accrue over one million registered users. This year, it has launched several new products, including new perpetual contracts offering exposure to altcoins such as XTZ (Tezos) and LINK (Chainlink.) It’s also started offering mutual insurance to help traders offset the impact of losses while avoiding the complexity of hedging instruments like options. 

However, it’s perhaps in the area of trust and transparency that Bybit is managing to differentiate itself against previous market leader BitMEX. The latter has been plagued by allegations from the crypto community about using its in-house trading desk to profit from traders and “weaponizing” its server issues as a means of increasing its insurance fund. 

In contrast, Bybit lives up to its values as a customer-centric platform. It operates a matching engine that can handle 100,000 transactions per second, along with a state-of-the-art pricing system to avoid manipulation. 

Furthermore, Bybit founder Ben Zhou has spoken out about the industry's security issues, explaining how his company invests in security by working with reputable firms on audits and implementing zero-trust architecture. Such a rigid approach to security ensures that ByBit has never been hacked since it launched over two and a half years ago. 

Outpacing the Competition

It’s this customer-centric approach, along with optimal market conditions, that has led to Bybit being able to 4x its open interest in Bitcoin futures in 2020. It increased from $150 million in January to over $600 million in October - outpacing BitMEX for the first time

Source: Skew.com

If further proof were needed that BitMEX is losing out to its newer rivals, then FTX is another example. Open interest in Bitcoin futures on FTX increased from around $75 million in January to $330 million in October. 

Source: Skew.com

However, unlike Bybit, which is focused on the perpetual swap market, FTX has made its name with new products such as leveraged tokens. Therefore, Bybit is perhaps a more natural fit for traders looking for an alternative to BitMEX, which is reflected in its higher open interest. 

With user trust in KuCoin, OKEx, and BitMEX declining, it seems evident that traders and investors will continue to look for more reliable alternatives. Crypto exchange operators would do well to learn from these mistakes and step up to demonstrate their credentials in terms of security, reliability, and customer focus. In doing so, they have an opportunity to capture market share from the competition. 

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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The Influential Exchange Where Crypto Projects List Before Elite Exchanges Court Them

The Influential Exchange Where Crypto Projects List Before Elite Exchanges Court Them

In a world full of the generic, droning and dull, we search for things that are unique, inspiring and create meaning in our lives. At the core of it all is our own quest for individuality; to find our truth. It is our individuality that enriches the collective with new ideas and expands our scope of the world around us. It takes a careful eye and a keen understanding of the world to know when something is special when compared to the rest. 

MXC is a crypto exchange that has become a muse of sorts within the crypto community. It has become the first stop for many quality crypto projects which are later picked up by even larger exchanges such as Binance, Coinbase, and KuCoin. To date, MXC has listed over 150 crypto projects of which coins like AVA, RUNE, SNX, COMP, HIVE, BAL, DOT, KSM, DMG, and SXP were listed first before making their way to a larger exchange. 

The fact that so many successful crypto projects had their start with MXC is testament to the thoughtful procurement of assets for the exchange. Being selective with the projects that the exchange decides to list is key to their strategy. With the sheer number of crypto projects out there, MXC meticulously researches and qualifies the projects it wishes to list. Core criteria that the exchange uses for listing is around the crypto’s underlying technology, project leadership, operating model, fundamentals, security, and network scalability.

With a track record for listing only the best projects, MXC is where many crypto projects turn to first in their quest for adoption. Projects that are selected to list on the exchange do not take the selection lightly. Although the implications for these projects are large, the rapport MXC has built as a stepping stone for quality projects only helps the exchange to take an even better foothold amongst its competition as it looks to achieve growth as well.

I am Marcus Henry, an American Writer and Journalist from Austin, Texas (USA). I’ve been working in the tech industry for over 12 years and focused on global developments in the crypto space for the last three. I cover breaking news, discuss new projects, interview leaders and innovators, and demo new tech. Let’s connect on Twitter or LinkedIn.

Disclaimer: The information above does not constitute investment, financial, trading or any other sort of advice and you should not treat any of my content as such. I do not recommend the purchase, sale, or holding of any cryptocurrency or other product and/or service. Nothing I write about should be deemed as an offer to purchase, sell, or hold a cryptocurrency or other product or service. Please do your own research and consult a certified financial professional before making any investment decision.

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Gemini’s Tyler Winklevoss believes “cash is trash“ and that bitcoin will come out on top one way or another

Gemini’s Tyler Winklevoss believes “cash is trash“ and that bitcoin will come out on top one way or another

Quick take

1 minute read

  • “Cash is trash“.
  • Tyler Winklevoss slams Fiat currency in a recent CNBC interview.

“Cash is trash“.

This is what Tyler Winklevoss, one-half of the infamous Winklevoss twins said recently on CNBC it’s only a matter of time before investors decided to abandon the US dollar, as well as other Fiat currencies, and instead opt-in for bitcoin.

He said:

“at some point, it is hard to look at those data points and say that bitcoin isn’t an incredible store of value.“

To that end, the other half of the twins, Cameron said that bitcoin just needs to be “better than gold“. This will help see its price spike to insane levels.

Eventually, bitcoin will hit $500,000 in the twins' eyes. For those that don’t know, the two-run the Gemini crypto platform based in the United States.

The way bitcoin is currently acting would indicate that the twins are somewhat on the right lines. That’s not to say that bitcoin will eventually hit such a milestone as half $1 million but many enthusiasts believe that the ballroom that bitcoin has been recently experiencing is different to the previous market cycles due to how many institutional investors are getting involved with the industry. 

It’s also worth mentioning that bitcoin has matured massively over the course of 2020 and could have a permanent place in a financial system in the near future.

Bitcoin is being adopted all around the world consistently and has been over the past year. Only exciting things seem to be coming for the leading cryptocurrency but before we finish, it is worth noting that we are not financial advisors and this is not financial advice. Please do your own research before investing in a cryptocurrency.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Coinbase co-founder, Fred Ehrsam set to join Fireblocks as a member of the board

Coinbase co-founder, Fred Ehrsam set to join Fireblocks as a member of the board

Quick Take

1 minute read

  • Fred Ehrsam, the co-founder of the crypto platform known as Coinbase is getting ready to join the digital asset security platform Fireblocks. 
  • It was announced last week that Fred would be joining the board following a recent round of funding.

Fred Ehrsam, the co-founder of the crypto platform known as Coinbase is getting ready to join the digital asset security platform Fireblocks. It was announced last week that Fred would be joining the board following a recent round of funding.

The co-founder of the well-known crypto platform is getting ready to join the company as a board member following a $30 million funding ground to help expand its operations on an international level.

Throughout 2020, Fireblocks has launched a secure asset transfer network which would allow more institutions to efficiently transfer assets on chain. And on top of this, the platform also announced that it has seen more than $150 billion in transferred assets over the course of the past year. Fred has said:

“Fireblocks has become the go-to for any business looking to build new digital asset operations or scale existing ones… The extraordinary growth of the Fireblocks Network and its team in the last year attests to the enormous value they have unlocked for enterprise and institutional customers.”

 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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North Carolina residents to soon have access to Binance.US services

North Carolina residents to soon have access to Binance.US services

Quick take

1 minute read

  • Binance.US is getting ready to launch its services available to North Carolina residence. 
  • Binance published a statement earlier this month Catherine Coley saying that the digital asset marketplace is now available for residents in North Carolina.

Binance.US is getting ready to launch its services available to North Carolina residents. The subsidiary of the major crypto platform Binance published a statement earlier this month on the 12th of November to CT with the CEO, Catherine Coley saying that the digital asset marketplace is now available for residents in North Carolina.

This would allow them to buy, trade and earn cryptocurrency.

“[North Carolina] is a state that has been involved in building the banking industry and evolving technology,” stated Coley.

It is also worth noting that North Carolina is home to the research triangle park. For those that don’t know, this is a well-known high tech research and development company that includes Cisco systems as well as other consulting companies in relation to blockchain.

In regards to this, they further say:

“Research Triangle Park and the robust school systems in the state have it positioned to meaningfully impact the blockchain industry [...] the state can begin to build more companies that have easy access now to cryptocurrencies.”

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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