Top cryptocurrency exchange BitMEX is in the limelight as its system downtime rouses rumors of foul play in line with Bitcoin price.
According to a tweet by BitMEX, the exchange issues started following unprecedented trading activity on March 12.
Between 02:16 and 02:40 UTC 13 March 2020 we became aware of a hardware issue with our cloud service provider causing BitMEX requests to be delayed. Normal service resumed at 03:00 UTC. As a reminder, latest system updates can be found on our status page https://t.co/fVa1FAqSEW
— BitMEX (@BitMEX) March 13, 2020
Several top cryptocurrency exchanges like Huobi Global, OKEx also went through large volumes of liquidation. With BitMex being the worst hit with Bitcoin worth about $618 million liquidated in a few hours. On OKEx the erratic trading led to the liquidation of $88.42 million involving different cryptocurrencies. While Huobi experienced liquidation worth $27.45 Million.
Beyond these three major exchanges, almost all crypto assets have plummeted down by almost 25%. There’s still no logical explanation as to the cause of the frenzied liquidation of digital assets. One school of thought, however, believes it might be a result of the bearish tendency of the crypto space.
In light of the frenzied trading, BitMEX went offline for about 25 minutes, between 02:16 and 02:40 UTC. The exchange in a tweet claimed it was faced with brief hardware issues, hence the reason for the downtime.
The tweet reads: “Between 02:16 and 02:40 UTC 13 March 2020 we became aware of a hardware issue with our cloud service provider causing BitMEX requests to be delayed.”
Sam Bankman-Fried theory
In a series of tweets, CEO of FTX, Sam Bankman-Fried blames BitMEX for the current downturn of Bitcoin price. The tweets tagged “Insane theory of the day: there was no BitMEX hardware issue”, alleged that there was actually no hardware issues. And that in a bid to prevent Bitcoin from crashing to zero, BitMEX had to shut down its system.
Adding that the system shutdown, helped Bitcoin gain traction from its $3,700 lows to $5,000.
He also pointed out that though very unlikely, there’s a slim chance that BitMEX really had maintenance issues.
In reaction to Bankman-Fried’s theory, the exchange expressed disappointment in Sam’s proposed explanation to the shutdown and its link to Bitcoin pricing. Adding that, “he should know better than to deal in such a conspiracy theory”. Especially since he also owns a cryptocurrency exchange.
"Insane" is right. Sam, you know better than to deal in this type of conspiracy theory, especially since you operate a platform in the space and under pic.twitter.com/NvNvUrYg0I
— BitMEX (@BitMEX) March 13, 2020
BitMEX also pointed out that it was securely insured and has one of the largest insurance finds in the crypto space. Further assuring users of the health of the platform.
The exchange wrote further, “The BitMEX insurance fund is the largest in the industry by orders of magnitude and remains healthy.
Adding that it was prepared for any eventualities and would in no way condescend to the level Bankman-Fried was implying.
BitMEX to Blame – Salsatekila
Prominent crypto trader, Salsatekila, a notable crypto trader, also pinpointed BitMEX as the cause of the selling pressure that took place. He pointed out that though Bitcoin was down to $3,600 spot buyers were on the ground and ready to buy into the dip.
Last month, there were sightings of the Bitcoin golden cross and predictions of a bull run in the crypto space. This sudden bearish trend is definitely a surprise.
What’s your take on Bitcoin’s current price and the crash that occurred? Do you think Sam Bankman-Fried’s theory is correct? Send in your thoughts in the comments below, we would like to hear from you.