BitMEX, the world’s largest cryptocurrency exchange by daily trading volume to date, now holds 0.18% of all Bitcoins in circulation.
BitMEX, the world’s largest cryptocurrency exchange by daily trading volume to date, now holds 0.18% of all Bitcoins (BTC) in circulation.
In a Dec. 26 tweet, James Lopp, CTO at New York-based crypto custody startup Casa, also pointed out that BitMEX’s dedicated insurance fund has surged 62% in 2019.
BitMEX holds 33,449 Bitcoins out the 18.1 million mined to date
According to daily historical records of BitMEX Insurance Fund, the balance of the fund has grown from 20,776 BTC on Jan. 1, 2019 to 33,449 BTC on Dec. 26, worth around $239 million at press time.
As such, the world’s top Bitcoin exchange now owns nearly 0.2% of all 18.1 million bitcoins mined to date.
Bitcoin in BitMEX Insurance Fund (January–December 2019). Source: Twitter
BitMEX Insurance Fund is used to alleviate unfilled liquidation orders
The BitMEX Insurance Fund is used by the crypto exchange to avoid auto-deleveraging in traders’ positions and alleviate unfilled liquidation orders before they are taken over by the auto-deleveraging system.
According to the firm, the growth of the fund provides a significant level of assurance to winning traders that they will be able to attain their expected profits, at the same time limiting the downside liability for losing traders.
Essentially, BitMEX uses its dedicated insurance fund to cover losses in case trading losses exceed traders’ deposits.
Crypto exchanges continue to accumulate Bitcoin
While the amount of Bitcoin owned by BitMEX continues to grow, there is a similar trend on other major crypto exchanges including major crypto exchange Binance. As reported by Cointelegraph, as much as 7% of the entire circulating supply of Bitcoin was held in the wallets of eight cryptocurrency exchanges in October 2019.
According to the blockchain data provider Token Analyst, major global crypto exchanges such as Poloniex, Kraken, Bitstamp, Bittrex, Bitfinex, BitMEX, Binance, and Huobi have continued to accumulate crypto in 2019 and were the “biggest HODLers” as of October.
Source: Cointelegraph https://cointelegraph.com/