Previous King BitMEX derivatives airdrops to save themselves, is it too late?

On December 21, the news that BitMEX announced the platform tokens was unlikely. This venerable cryptocurrency asset derivative trading platform seems to have disappeared from the public eye. "We will open the business quickly, economically and financially." The concept quickly fell into hotspots such as DAO and Metaverse.

BitMEX is not a leader in cryptocurrency derivatives trading. During the March 12, 2020 crash, BitMEX caused a trust issue with 25 minutes downtime. "HBO" at the time. "After.

In October of the same year, the United States Department of Justice and the United States Commodities and Futures Commission (CFTC) sued BitMEX, accusing it of violating anti-money laundering laws and of d 'arresting technical director Samuel Reed. industry.

Today, new CEO Alexander Höptner developed a turnaround plan called "Beyond Derivatives" for BitMEX. The launch of the BMEX token platform and the opening of the niche market are important steps. However, with new and established companies such as Binance, OKEx, FTX, and Bybit competing for the cap, BitMEX's expansion and self-service are doomed to a full range of twists and turns. .

BitMEX late consolidation path

BitMEX, which started out as a legitimate cryptocurrency trading industry, entered the forex trading phase after a market downturn.

On December 21, BitMEX CEO Alexander Höptner announced the platform beyond BMEX in 2022, following new products and features including fiat-onramp (fiat channel), trading platform and financial management of BitMEX revenues). . . . These are all part of the concept of “broadcast derivatives”.

Alexander Höptner, who recently became CEO of BitMEX, announced in a blog post “Beyond Derivatives: BitMEX's Future Road” in April this year that it was time for BitMEX to change ownership. Its identity and important role The leader in cryptocurrency is BitMEX, and the exchange rate has moved to "bigger exchanges".

BitMEX has developed a strategic plan for “advertising products”.

"Big stock market" means the expansion of the business. As part of the plan at the time, BitMEX will add five global distribution companies: space, brokerage, surveillance, information products and training to achieve its mission, and an online platform.

According to the report, the first phase of BMEX usually comes in the form of air drops for new registered users, business users and new registered users, and higher commercial products, more air drops can be achieved. Phase 2 distribution is expected to begin in the second quarter of next year, when BitMEX begins its business and lists BMEX.

Currently, the BMEX white paper is yet to be released, but it is certain that the total equipment will be 450 million, sunk once and shipped in 5 years. Most of the BMEX will be used to reward customers and improve the BitMEX ecosystem, with a 20% share for BitMEX employees.

As with other trading platform tokens, the official introduction of BMEX can be used for reduced trading rates, early access to new products and favorable terms, special giveaways and sports ticket sweepstakes. over time, free BitMEX Academy training and other scenarios. At the same time, BitMEX will return Destroy BMEX on a quarterly basis.

The token platform uses scenarios and deflation mechanisms to make it look like crypto users went back 3 years ago, and that process has already been completed. Founded in 2014, why does BitMEX now only offer platform tokens? The most direct reason is to fundraise.

After the expansion plan, the demand for BitMEX funds also increased. According to the report, BitMEX changed management in 2021, created many new jobs, nearly doubled its workforce and opened offices in Switzerland (BitMEX Link) and Vancouver. All of these new measures mean a significant increase in performance.

In addition, given the BitMEX first stage airdrop requirements, platform tokens are also an important source of support for new business. Obviously, they are hoping to use BMEX to attract new users and increase their marketing platform.

It is not yet clear whether this method will work or not. After all, now trading platform tokens have already gone down the chain. Taking BNB as an example, Binance's platform token has already boosted the chain, and its products, features, and marketing are unprecedented. On the other hand, the competition on BMEX seems weak, and the road to BitMEX integration is actually a bit late.

Self-help while walking high should not be underestimated.

BitMEX, which is gaining market share and problematic platform tokens, always comes down to walking in the background.

Two years ago, BitMEX remained a major leader in the cryptocurrency derivatives industry, and with its first-mover advantage, it once held over 60% of the cryptocurrency derivatives market. , and with the emergence of new markets such as Bybit and FTX, the BitMEX market has gradually eroded.

During the “3 · 12 Crash” there was a huge change in the market. From March 12 to 13, 2020, Bitcoin went from around US $ 8,000 to around US $ 3,600, causing the market to crash. As the market collapsed, on March 13, BitMEX fell to 25 minutes, giving users more jobs.

BitMEX has become a two-way DDOS attack, claiming to have caused a backlash. However, not everyone believes this explanation. Some traders said that BitMEX mistakenly violated their trading position during the close period resulting in a loss of 30 BTC.

This decline has tarnished BitMEX's reputation. Some users think that when there are too many business options to choose from in the market, if one of the servers is bothering the user because the server is down, people will start. Consider other options, even if the time is short.

In fact, after the downturn, BitMEX's Bitcoin holdings fell 25% in just two weeks, and daily trading for the period continued to decline to the level seen during HBO (Huobi, Binance, OKEx). , the work of managers is not guaranteed.

Bad things happen later. In October 2020, the US Department of Justice and the US Commodity Futures Commission (CFTC) filed a complaint against BitMEX. The Justice Department believes that BitMEX violated U.S. financial protection laws, brought criminal charges against the creator and regulator of the exchange, and arrested CTO Samuel Reed for suing foob. Support for events and customer needs etc.

After the lawsuits were filed, BitMEX users suffered more and more and the packaging industry was declining by the day. According to data from CoinMarketCap on the 27th, BitMEX ranked 17th with a 24-hour trading volume of $ 847 million in the derivatives platform's trading volume ranking, and Binance ranked first with 40 , $ 1 billion.

Fall to 17th place in BitMEX transaction volume rankings

BitMEX's problem stems from the loss of representative derivatives trading, and now exchange ideas are a means of self-sufficiency rather than exchange. However, given the current market dynamics, it will be difficult for BitMEX's market expansion to get back into the blood soon.

BitMEX's greatest legacy still comes from strong competition. Today, Binance, OKEx, FTX, Bybit and other new and emerging platforms continue to attract new users and divide the stock market. Most of these exchanges include positive features such as location, derivatives, stock trading, asset management, and NFT trading. In this way, the head platform extends its tentacles into the public channel, accumulating a large number of users.

BitMEX has seen signs of declining performance in the derivatives market, and support for the stock market will continue to face stiff competition and attempts to succeed. When old users leave BitMEX due to trust issues, obviously the marketing platform needs to put more effort into fixing old users and attracting new ones.

After announcing the platform token announcement, Alexander Höptner was convinced that "the development of BMEX is a renaissance, turning BitMEX into a full-fledged exchange." However, the evolution of the economic model is doomed to make it a pioneer. The road is full of twists and turns.