Bitmex Cold Wallet Holding Hiked by 100K BTC amid CFTC Probe
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Bitmex Cold Wallet Holding Hiked by 100K BTC amid CFTC Probe

February 6, 2020      Tarulika Jain

BitMEX, the Seychelles based bitcoin trading platform saw the dramatic drop in its holdings of cold wallet storage in the month of July. The slide was caused by the news that the Commodity Futures Trading Commission will scrutinize the Exchange. After the declined balance in December, BitMEX experienced a massive inflow of 100,000 BTC in recent months.

Speculations Related to Holdings of BitMEX

Subsequently, after the massive transfer of the BTC to its cold wallet, many investors have speculated about market manipulation. Some analysts explained that many crypto “whales” are known for moving a significant number of coins to a particular crypto address just before selling them to impact market prices.

On the contrary, crypto enthusiasts are predicting that BitMEX is aiming for the security of coins by transferring them to cold wallet. As the cold wallet involves the offline storing of the bitcoins, it may aid in fraud prevention through cyber attacks. Another reason for the enormous rise in holdings can be attributed to increasing the liquidity on the Exchange. Thus, the causes for the raised holdings are mere speculations at this point.

Unbeatable Crypto-Derivative Platform

2019 proved as the dreadful year for the crypto-derivatives Exchange BitMEX. The series of events started with the investigation of Commodity Futures Trading Commission (CFTC). The probe was to find if the Exchange deliberately lured the citizens of America to trade on the unregulated platform. BitMEX was also accused of “systematic illegal activity” last year. 

Regardless of chaos experienced by BitMEX, the investors kept their trust in the Exchange, and the holding scaled up throughout the year. The analytics platform Skew examined that insurance fund of BitMEX contained 34,000 BTC and stated it as “the most capitalized crypto native clearinghouse of the crypto industry.” Also, the total open interest across contracts on the Exchange noticed an upward trend to reach $1.5 billion. Not only the holdings of cold wallet hiked up, but BitMEX also observed positive inflows.

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Tarulika Jain
Tarulika Jain

Tarulika is an engineering graduate and an eloquent crypto blogger. Being a digital economy supporter, she keeps herself updated with the latest innovation in the crypto industry, Blockchain Technology, Internet of Things and other technologies. Currently, she curates the simple and interesting content for Crypto guides for beginners. If you want to learn more about the cryptocurrencies, latest trends of blockchain-powered AI applications, you are free to follow her on LinkedIn and Twitter.