After allegations of manipulation: BitMEX gives the all-clear - users are bogged down


The crypto-exchange BitMEX gives the all-clear. The trading platform, on which, among other things, derivatives for Bitcoin and Ether can be traded, was at short notice under a DDOS attack. About their Twitter account, the company gave the all clear - so everything is back in the green. Not so with the users, who apparently are largely bounced. There is talk of manipulation.

The crypto exchange BitMEX, on which one can trade among other things Bitcoin derivatives, stood briefly under a DDOS attack, has now however again everything under control according to own data. It all started with the announcement of "maintenance" on the website:

The first signs of inconsistencies were evident in the company's Twitter account when it reported on August 22 that many users reported login issues:

Shortly afterwards BitMEX realized that they had fallen victim to an attack, but the login had stabilized again:

On the same day, however, came the all clear. So BitMEX has the situation under control again and everything could go back to its usual gear:

 While the login was not possible at short notice, many users were given the opportunity to dissolve their short positions or to act at all. So the community reacted little enthusiastic. The allegations eventually went so far that a user called the stock market a "shame for the whole ecosystem":

In the meantime, the Bitcoin price had risen $ 400 to $ 6,800, coinciding with the liquidation of a large number of short positions.

What happened?

The liquidation of the short positions coincided with the brief maintenance of BitMEX - which has already left many traders with no opportunity to act. However, since these had apparently been announced, users would not have been surprised. Rather, it was the debacle that followed what baffled the traders so much. A - even if it is so short-term - suspension of the login Trader could already cost a large amount of capital. Worse yet, the delay caused by the (alleged) DDOS attack eventually resulted in many users being unable to access their accounts for a long time. So they became unable to act. The fact that the maintenance of the stock market, the short-term rise in prices and the attack followed in such a short time, can therefore be doubtful,

Ultimately, there are such recurrent security vulnerabilities and manipulation allegations that testify to the immaturity of the Bitcoin ecosystem. Targeted regulation and regulated exchanges would offer investors much more security.

Addendum: As it turns out, BitMEX has rented the entire 45th floor of the "World's Most Expensive Offices" in Hong Kong, according to Bloomberg . The Cheung Kong Center is also home to affluent companies such as Goldman Sachs Group Inc., Barclays, Bank of America Corp., Bloomberg LP and billionaire billionaire Li Ka-shing's empire.



BitMEX Founder: Grexit has no influence on Bitcoin course


If Bitmex's founder is concerned, the bitcoin price will not rise sharply this week, despite the potential Grexit this week.

This month, Greece has to pay back $ 1.8 billion in four installments to the International Monetary Fund (IMF) - the first installment of $ 300 million is due this Friday.

There are concerns that Greece will not be able to raise the funds and the default could automatically lead to a Grexit. In an interview, Arthur Hayes, founder of Bitcoin Stock Exchange BitMEX, said :

            "The Greeks are rushing to get their money out of the country and into a stable banking system. The rich have already done so, and the poor, as well as the middle class, are fighting for their very survival - so Bitcoin just does not fit into the picture. "

This claim is in stark contrast to what we saw in 2013. At that time Cyprus received a € 10 billion bailout package in return for closing the second largest bank in Cyprus, and the Bitcoin price shot up extremely high.

"It would be a headshot"

Earlier this year, Xapo co-founder Wences Casares wrote an article on Techcrunch, saying that Bitcoin still has not managed to tackle the country's main issue and added:

            "If the euro is the problem then switching to Bitcoin would be like trying to cure his headache with a head shot."

The businessman says the main problem of the Greeks is the loss of control by the ECB (European Central Bank). The country was no longer able to control the printing and issuing of euro itself. But with the ECB, the country had at least the slightest chance of convincing the ECB to spend more on the euro.

"If the Greeks switched to Bitcoin now, the country would have no control over the currency issue at all. Nobody could be persuaded to spend more money (in this case Bitcoin), neither the ECB nor any other central bank, "says Casares.