Lose user trust? "Black Thursday" has reduced BitMEX bitcoin holdings by nearly 40%

This article Source: Cointelegraph Chinese , Author: MICHAEL KAPILKOV, the original title "from the black since Thursday, BitMex Bitcoin holdings have been lost."

Since Black Thursday, BitMex users have raised Bitcoin (BTC) from the exchange.

On March 13th, BitMex held 306,814 bitcoins (BTC). By April 9, this number had dropped to 222,025, which meant that BitMex's bitcoin holdings were reduced by 38%.

Source: TokenAnalyst

Although this coincides with the recent trend of traders shifting bitcoin out of centralized transactions, this decline is more pronounced in terms of BitMex.

Source: glassnode

Traders turn to better options

On March 13, BitMex Exchange went offline for 25 minutes. According to BitMex, they suffered two DDOS attacks, which led to an interruption. However, not everyone believes this interpretation.

A well-known trader in the cryptocurrency field shared his views with Cointelegraph:

"Since Bitmex was established in 2014, competition has become increasingly fierce, and the most notable among them is ByBit & Deribit. Not surprisingly, if one of the exchanges dissatisfied users due to a server failure, no matter how short the interruption time, people Start thinking about other options. "

Another trader claimed that BitMex erroneously liquidated its leveraged position during the interruption, resulting in a loss of 30 BTC (worth 150,000 USD). Some people even consider whether they should completely ban shorting in the cryptocurrency market.

Celsius Network (CEL) founder and CEO Alex Mashinsky believes that in the eyes of traders, the recent " lightning crash " may hurt BitMex:

"I think they lost their customers who were liquidated during the flash crash in March. In addition, many other exchanges now offer the same products and have many other features that BitMEX does not have. Therefore, it is difficult for BitMex to re-establish the customer base. "

A popular encrypted YouTuber named "The Moon" posted a video explaining why he deleted the BitMex video tutorial, which was once the most popular video on his channel. In the same video, he urged his followers to stop using the exchange.

He went on to list some reasons why BitMex was a bad choice for its followers. These include poor customer service and a class action charge against user data, which alleges BitMex is selling unregistered securities to US residents. The lawsuit also alleges BitMex manipulated prices:

"BitMEX deliberately established its futures prices on spot market exchanges, which have limited liquidity and are therefore relatively easy to manipulate. BitMEX then conducts manipulation transactions on these exchanges to change the price of Bitcoin or Ethereum.

Bitmex lost nearly 40% of its bitcoin holdings in less than a month, which may mean that this derivatives exchange that once dominated cryptocurrencies was hit hard.