Arthur Hayes is the CEO of the Bitcoin Stock Exchange BitMEX. Now Hayes has stated that Ethereum is becoming a “two-digit shitcoin”. The pun “Shitcoin” is a known corruption and refers to an (almost) worthless coin. He said Ethereum would fall below $ 100 per coin if all venture capitalists chose to sell.
Ethereum is already suffering from an extreme price decline. From $ 1,400 at the time, the coin fell to less than $ 260. At the time of writing, the price had recovered slightly and stood at around $ 311. Bitcoin has also lost much of its value against its all-time high. As late as December, Bitcoin stood at nearly $ 20,000, but then slumped to $ 6,400 until the deadline. This is a 68% loss, while Ethereum lost 79%.
BitMEX is one of the largest crypto exchanges in the world
BitMEX handles a daily crypto derivative trading volume of billions of dollars from. Since two weeks there are also offers Ethereum contracts. These are so-called “perpetual swap contracts”, ie Ethereum futures with no expiry date. This makes these contracts similar to the most popular Bitcoin derivatives on BitMEX. Currently, the daily Ethereum trading volume on BitMEX is 800,000 Ethereum (ETH), which equates to approximately $ 250 million. With that, BitMEX reaches a level that is equal to Binance and Bitfinex combined. Both crypto exchanges handle a daily volume of 1 million Ethereum (ETH). In other words, BitMEX is the world’s largest stock exchange for Ethereum. Of course, one has to keep in mind that BitMEX offers derivatives rather than the “pure” cryptocurrency.
It is also possible that the Ethereum offerings on BitMEX and the strong price slide are related. Until its listing on BitMEX, Ethereum was stable at around $ 470. After the launch on BitMEX it fell by 40%. This could be related to BitMEX allowing short positions and leverage. Traders can then bet Ethereum falls and multiply that bet.
Many shortseller at Ethereum
Now, if the CEO of BitMEX thinks Ethereum falls below $ 100, it lays suggest that traders on BitMEX will be short on Ethereum short positions. That could evolve into a self-fulfilling prophecy. The Ethereum market is smaller than the Bitcoin market and therefore easier to manipulate. BitMEX, on the other hand, is big enough to influence Bitcoin’s worldwide share price. Ethereum’s daily trading volume is just a taste of what BitMEX is capable of.
Arthur Hayes speculated that all venture capitalists could sell their Ethereum at the same time. The reason for this is that they used to say “I do not care!” At a certain point and then sell everything that is possible. This is part of the strategy of professional traders and serves to limit the losses. If done with Ethereum, the cryptocurrency ETH would change from a three-digit to a two-digit “shitcoin”.
Sources: BitMEX Crypto Trader Digest, BitMEX, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/bitmex-ceo-ethereum-that-to-digital-shitcoin/
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