2020 Continues Bitmex’s Run of Bad Fortune from 2019

Over the past few years, Bitmex has progressively fallen from its original position as one of the leading and largest cryptocurrency trading platforms in the industry, to today being riddled with scandals and seeing its once a loyal user base running for cover.

We’re taking a look into the controversies that have surrounded Bitmex over the past 12 months, as well as the most recent slew of scandals to hit the platform in the last few weeks.

Bitmex’s Woes in 2019

2019 was a bad year for a Bitmex with the platform being hit with scandals in early 2019 that include the announcement of an investigation by the CFTC into Bitmex’s role in allowing US citizens to trade on the platform, as well as widespread reports that Bitmex has been trading against its own clients and liquidating their positions for profit.

Although much of the middle of the year was a bit quieter for a Bitmex, the end of the year finished out as poorly as it had started.

In late 2019, the news broke for a Bitmex’s Twitter channel had been hacked, and on the same day news broke that hackers had stolen large amounts of Bitmex’s user data from the platform.

The Continued Collapse of Bitmex in 2020

Although the start of 2020 was relatively quiet for a Bitmex, over the recent weeks a string of new controversies have haunted the margin trading platform.

Traders and pundits are crying foul play regarding a 25-minute gap in trading that occurred during Bitcoins infamous $4000 price crash in March.

This is compounded by the fact that on the same day, the highest number of trader liquidations on a single day over the past 12 months occured.

As well as this, in April news broke that Bitmex, along with a slew of other major cryptocurrency trading platforms, have been hit with lawsuits by the Southern District of New York as well as the SEC relating to Bitmex and others participants selling unregistered securities.

Best Bitmex Alternative in 2020

PrimeXBT

PrimeXBT is the world’s largest multi-asset margin trading platform that offers the same 100X leverage on Bitcoin that is available at Bitmex, however even further than this offers 100X leverage on a wide range of other crypto assets, and offers 1000X leverage on a wide range of traditional assets such as stock indices and forex pairs.

PrimeXBT has a strong focus on providing high security for its users, and unlike Bitmex, has never had a data breach and has also never been hacked or had any systems invaded by hackers.

PrimeXBT also provides substantially lower fees than Bitmex, with a flat rate of 0.05% being applied across all trades irrespective of the size of the trade.

Kraken

Kraken is another cryptocurrency trading platform that provides margin trading and also that has a strong focus on security.

Kraken was launched by a couple of cryptocurrency exchange security analysts back in 2014 following the infamous crash of cryptocurrency trading platform, Mt. Gox.

Kraken is a platform that has dealt with a large number of technical issues in the past, that have included having a glitchy trading engine that would regularly stall during trading.

Today however it appears Kraken has largely solved these issues, and today the platform is also another good option for traders looking for an alternative to Bitmex.

What is the Future of Bitmex?

2019 was an absolute nightmare for Bitmex with it being undoubtedly the cryptocurrency trading platform that has been caught in the most controversy and scandal throughout that year.

So far 2020 isn’t shaping up to be much better, with at least two, if not three, major scandals already heading Bitmex’s way and us only being a few months into the year.

While it is unclear exactly what the future of Bitmex will be, one thing that is for sure is that if the platform continues at this trajectory there is only going to be so much flack that they can absorb before the ship starts to sink.