Dec 31 2019

Cryptocurrency exchange BitMEX to increase annual trading volume to 2 trillion yen-Insurance fund up 62%

 

The annual volume of BitMEX, the largest cryptocurrency derivatives exchange, has reached about $ 20 billion (about 2.2 trillion yen). According to Unfolded, a cryptocurrency market analyst, BitMEX's total volume in 2019 reached $ 19.6 billion, an increase of about 20% over 2018 volume.

Since BitMEX is a derivatives exchange, margin trading can be carried out by leveraging small funds. Therefore, the above-mentioned volume does not correspond to the user's assets and transaction value. BitMEX offers leverage from 1x to 100x, but according to Unfolded, the average leverage used was 25x. Therefore, $ 800 million (approximately 88 billion yen), which is 1/25 of the annual volume of $ 20 billion, is considered to be the volume actually traded by the user.

BitMEX insurance fund also increased significantly:

BitMEX's strong performance is also reflected in its own Insurance Fund data. BitMEX has a mechanism whereby traders can make up for the amount required for closing a position, rather than requesting the trader from this fund, and BitMEX traders request additional margin (additional margin) even when forced loss cuts are made It will not be done. While providing high leverage and using an insurance fund to prevent losses beyond its own funds through a "zero cut system", it has gained tremendous trust and support from traders.

Since the fund grows in proportion to the total assets of the users and the amount of the loss cut, the expansion of the fund can be an indicator of the number of users and activity, but the insurance fund increased by about 62% in 2019.