
BitMEX, a pioneer in the cryptocurrency industry, gained considerable traction as the first derivatives exchange in 2018 and 2019. Innovate perpetual swaps by introducing a constant funding rate to avoid futures' inconvenient expiry by adopting a permanent funding rate.
BitMEX preferred Bitcoin and Ether as a collateral when stablecoins were less common prior to its creation.
Benzinga recently met BitMEX CEO Stephan Lutz to discuss BitMEX's performance in recent years, the new perpetual contracts for the Shiba Inu ecosystem, the current state of the cryptocurrency market, and much more.
Lutz, who moved to DeFi from TradFi two years ago, voted with BitMEX from TradFi. Since then, he has been centered on driving BitMEX's growth, financial growth and market share amid industry-shaking events.
What are the prospects of BitMEX as a leading exchange in the future?
BitMEX has maintained a robust business in the past few years. Since pivoting back our business focus to crypto derivatives last year, our product portfolio and pipeline have grown significantly to cater to the evolving demands of professional traders. Prediction Markets, a derivatives product that utilizes real-world event outcomes such as Bitcoin ETFs, Guilds, a new social trading feature where traders can collaborate and earn rewards as a team, and the world's first Bitcoin margined inverse perpetual swap, XBTETH, are among some examples of derivatives products.
I want to learn more about BitMEX's new perpetual contracts for Shiba Inu, which was introduced last month. In August, BitMEX introduced two SHIB perpetual contracts, SHIBUSD and SHIBUSDT, which traders can enjoy up to 33x leverage - one of the highest max position sizes in the industry.
Could you share updates on BitMEX's Guilds solution, which was announced in July? Guilds, a social trading feature on BitMEX, was launched in July. The community has received positive feedback. Our traders are active on this feature and, within the first month, generated over $400 million of trading volume. The Guild members' performance is better than non-Gipfel members, earning $375 more per week in PnL than non-Gipfel members.
Arthur, the co-founder of BitMEX, has recently spoken out on the ongoing Bitcoin bull market. What do you think about Bitcoin market?
We are optimistic. The sentiment of Bitcoin remains strong, mainly driven by increased institutional interest and adoption. The upcoming Bitcoin halving in 2024 and the results for Bitcoin ETFs are positive signs that could boost demand and increase the chances of a bull run.
What's the current state of the cryptocurrency market, and where do Bitcoin and other cryptocurrencies stand regarding their prospects and challenges?
Bitcoin is thriving in the market, outpacing traditional asset classes. We expect more traction and volatility with the highly-anticipated halving in 2024.
regulatory uncertainty is a significant challenge. clear guidelines will protect traders and investors and establish industry standards. Asia is particularly active in creating a more crypto-friendly environment. Large institutions are still progressively expanding their investments in digital assets and crypto technology, like Google Cloud and PayPal, which would encourage more building activities and adoption.
What role will global regulations play in shaping the future of the Cryptocurrency industry in the next five years?
In the next five years, we anticipate mass mainstream adoption, as a clearer regulatory framework is established due to industry pressure and institutional investor adoption rates continue to skyrocket.
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