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CEO Arthur Hayes explains why BitMEX is not likely to add another crypto

www.chepicap.com 15 April 2019 21:50, UTC
Reading time: ~2 m

Arthur Hayes, the co-founder and CEO of cryptocurrency trading exchange BitMEX explains why his exchange is unlikely to add another cryptocurrency.

CEO Arthus hayes explains during a Youtube interview with cryptocurrency trader, Luke Martin, also known as the Venture Coinist, why BitMEX is unlikely to add another cryptocurrency to its exchange.

The CEO of BitMEX talked about developments in the crypto-space and the future of BitMEX and gave the answer to the much-asked questionin regards the addition of another cryptocurrency to BitMEX.

Read more: Interview with BitMex founder Arthur Hayes: "BTC to $50k within 2-5 years"

As BitMEX is hugely popular among Asian traders and numerous new tokens are added to the crypto markets at a rapid pace, the question everybody seems to have is when will BitMEX add more tokens to its current list, which only includes 8 cryptocurrencies at the moment.

However, despite many traders hoping for more coins, Hayes made it clear that BitMex would not be adding any cryptocurrency because derivatives required sufficient liquidity in the spot market.

Hayes started out by saying that BitMEX would never have as many coins as Binance due to that same reason.

'So you know, in my opinion, the futures market should always be tighter and trade larger than the underlying of this derivative. And that only happens if you have sufficient liquidity in the spot market.', hayes said.

'So, are we gonna list like number 200 on CMC? No, because the market makers would be unable to hedge the risks.'

Binance has a long list of coins where the market makers want to price a derivative, in such a case, it will spread too wide, which according to the CEO is terrible for clients.

'From a client perspective, as a terrible experience, I’m treating a leveraged product that has a wider spread, then the underlying on the spot market and I’m just increasing my risk of getting liquidated. And that’s something that we don’t want to do.'

Read more: 'Bitcoin will crash to $2,000, followed by HODLers screams'

So now we know that BitMEX doesn't seem all to eager to add any new coins out there. Asked and aswered.

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