It was heralded as the end of an era in crypto. The centralized exchange Arthur Hayes helped found in 2014, BitMEX, officially announced that it will close later 11 years about work.
The exchange launched a 100x continuous exchange, and the endless markets later became the biggest thing from crypto.
BitMart, another centralized exchange that was in the top 10 exchanges but fell to the bottom of the pecking order, announced the closure of its trading platform.
The last time a major CEX was closed was during the FTX implosion in November 2022. Instead of leading to a very cold crypto season, Bitcoin it became popular after just two months, and moved $21.5k swing level to support in January 2023.
There are discussions among crypto netizens that the shutdown of BitMEX may lead to another such conversion.
The difference between FTX implosion and BitMEX wind-down
The impact on the crypto markets from the collapse of FTX is very different from the situation of BitMEX. The former relied on the illiquid FTT exchange token and cost customers money for several months.
Binance’s announcement that they will sell their FTT forced investors to panic. People tried to withdraw their wealth of billions from FTX. The exchange was unable to meet these regulations because it was running out of money, which led to bank failures, losses, and years of trying to recover.
In comparison, BitMEX’s closing was relatively modest. The exchange was unable to find a buyer, possibly due to problems with the circuit $270 million insurance fund.
It has been criticized for its heavy-duty engine. A caseis stored on July 23rdit says “BitMEX has stopped its servers during the instability so
that the Insider Trading Desk can increase the number of clients to be resolved”.
The company has assured its owners that it is assets exceed liabilitiesa situation very different from the way FTX bank operates.
A new part of the exchange integration
XWIN Japan noted in a post on CryptoQuant Insights that the BitMEX and BitMart withdrawals signaled a major shift in crypto trends. In their view, this closure was part of a larger corporate merger.
A rise in Binance BTC reserves showed that liquidity was moving to the main exchange stopped standing. It was not a sign that many Bitcoins were sent to Binance to be sold immediately.
Meanwhile, stricter regulations, rising costs of compliance, and an increase in the number of organizations involved were making it difficult for smaller platforms to survive and attract users.
Current trends suggest that the secondary market may be dominated by exchanges that combine group compliance with greater transparency.
Brief Summary
- The closure of BitMEX and BitMart is a huge difference in the universe and the result of the FTX implosion that is under the market in 2022.
- In the coming years, smaller, larger exchanges that meet institutional standards will be left standing and competing in the market.
