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- After a historical drop in Bitcoin, many assumptions are coming with relation to this top player’s downfall. One of the reasons is the hardware issue of BitMEX.
- As per SBF, the BitMEX liquidation engine constantly managing the Bitcoin, as it failed to compensate enough BTC from leveraged long positions.
- Responding to the allegations of SBF, the Seychelles-based BitMEX rejected the term “conspiracy theory” explaining the exchange has been already prepared for such an event.
After a historical drop in Bitcoin, many assumptions are coming with relation to this top player’s downfall. One of the reasons is the hardware issue of BitMEX.
The CEO of FTX exchange has assumed that if BitMEX had not gone offline on account of “hardware issues” Friday morning, the price of Bitcoin could have crashed to zero.
The BitMEX “hardware issue”
According to a tweet from BitMEX, the problems arose during indignant trading activity on the evening of March 12. As a result, the exchange has to go offline for about 25 minutes, between 02:16 and 02:40 UTC.
Over the past year, BitMEX saw more liquidations than any other day, however, the collective volumes for Bitcoin futures also broke records.
Tweeter stories about this issue
Sam Bankman-Fried aka SBF, CEO of FTX put his thought in a thread on Twitter Friday morning that BitMEX might have drawn their exchange offline due to the fear that their liquidation engine could collapse the XBTUSD order book all the way down to zero, with a false statement of hardware issues.
1) Insane theory of the day: there was no BitMEX hardware issue.
— SBF (@SBF_FTX) March 13, 2020
As per SBF, the BitMEX liquidation engine constantly managing the Bitcoin, as it failed to compensate enough BTC from leveraged long positions. Further pointing to this issue, SBF alleged that the order book of BitMEX was ten times thin to manage the books, effectively sending Bitcoin to the death whirlpool.
"Insane" is right. Sam, you know better than to deal in this type of conspiracy theory, especially since you operate a platform in the space and under pic.twitter.com/NvNvUrYg0I
— BitMEX (@BitMEX) March 13, 2020
Responding to the allegations of SBF, the Seychelles-based BitMEX rejected the term “conspiracy theory” explaining the exchange has been already prepared for such an event.
On the other side, the Atlanta-based mining giant BitPico has tweeted a critical conclusion for the offline issue, claiming that the whirlpool has been constructed by BitMEX. Without any proof, BitPico alleged that BitMEX had utilized its own “bots and capital” to liquidate $ 993 million of a long position.
https://twitter.com/bitPico/status/1238303378192699392
In terms of trading volume of unregulated Bitcoin derivatives, BitMEX is the largest exchange in the crypto ecosystem. It has been accused countless times of intensifying declines in the price of BTC.
