US, WASHINGTON (ORDO NEWS) — Twitter user lowstrife came to the conclusion that during the recent market crash, the insurance fund of the BitMEX cryptocurrency exchange could be exhausted when Bitcoin reached $ 2000.
Using these numbers I determined that, at the bottom, there was:
122m of OI in the liquidation engine.
Avg price of that risk was 4820
Insurance fund completely depleted at ~$2000
Market in freefall with no end in sight
I can understand why the plug wanted to be pulled.
— lowstrife (@lowstrife) March 23, 2020
Lowstrife came to this conclusion after studying the publication on the BitMEX blog , which provides information on the work of the trading engine and the dynamics of the exchange’s insurance fund against the background of a sharp drop in the prices of crypto assets.
In particular, the post says that the insurance fund of the exchange successfully completed its task and, as a result, its balance sheet almost did not change.
However, lowstrife does not exclude that the management of BitMEX could “knock out” the trading platform because of fears of continued freefall, liquidation of positions and, consequently, exhaustion of funds in the insurance fund. Nevertheless, the exchange explained the malfunctions during the collapse of the market with DDoS attacks.
Be that as it may, but after the collapse of the market on March 12-13 and BitMEX going offline, the market’s position in the market has been greatly shaken. According to skew, the once-leading trading platform is already in fourth place in daily trading volume:
Earlier, ForkLog reported that the well-known Adaptive Capital Bitcoin fund is about to close after a 50% decrease in asset value during a recent price collapse. According to some reports, the fund used BitMEX for operations.
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