Why did BitMEX fall from the altar of the world's largest Bitcoin trading platform?

BitMEX once reigned as the world's largest Bitcoin trading platform, but in recent years, its position has gradually been challenged, eventually falling from its throne. aijiebot, a quantitative trading bot, had been conducting automated trading on the BitMEX platform, but has shifted to other trading platforms since last year. Here is an analysis of the reasons behind this shift:

Firstly, BitMEX's actions during the Bitcoin crash on March 12, 2020, sparked widespread controversy. When the Bitcoin price plummeted, BitMEX chose to disconnect from the network, colloquially known as "pulling the plug," which many investors viewed as irresponsible and manipulative market behavior. This incident not only damaged BitMEX's reputation but also eroded investors' trust in the platform.

Secondly, BitMEX's cancellation of the order rebate system also had a negative impact on its business. Order rebates are a common way for trading platforms to attract investors, offering them a certain amount of commission refund to encourage more trading on the platform. After BitMEX canceled this system, it not only reduced its appeal to investors but also allowed other platforms with more favorable policies to gain a competitive advantage.

Furthermore, BitMEX's trading fees have always been at a high level in the industry. While high fees may reflect the quality of service and security provided by the platform, in a fiercely competitive market, excessively high fees can also be a reason for investors to choose other platforms. Especially when exchanges like Binance offer lower fees, BitMEX's high fees have become an obstacle to its business development.

Lastly, the rise of other exchanges has also posed a challenge to BitMEX's position. For example, Binance, currently one of the largest Bitcoin trading platforms, has attracted significant attention from investors with its advanced technology, excellent service, and reasonable fee policy. As Binance and other exchanges continue to grow and expand, BitMEX's market share has gradually eroded.

In conclusion, the fall of BitMEX from the throne of the world's largest Bitcoin trading platform is mainly due to a combination of factors, including its inappropriate actions during market crashes, the cancellation of the order rebate system, high trading fees, and the rise of other exchanges.

  admin   2024-5-9