Crypto exchanges are in line to retrieve outgoing BitMEX flows

BitMEX suffers from massive exits.

The funds are heading so far to the main centralized crypto exchanges.

Decentralized exchanges are waiting behind the scenes and could capture shares

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The money comes out of Ethereum Code and other exchanges are lining up for the funds. Now that BitMEX and Arthur Hayes face charges, traders scent the threat and flee to greener pastures.

According to on-chain data provider CryptoQuant, BitMEX recorded outflows of over 11,250 BTC, much of which was directed to a handful of top exchanges, including Binance, Gemini, and Kraken.

$ 11,257 BTC has been transferred from BitMEX to all other exchanges. Mainly went to #Binance, #Gemini and #Kraken.

The suffering of an exchange, the gain of the DEX?

One of the main reasons traders flocked to BitMEX was the ability to trade derivatives and take advantage of leverage to take high risk, high reward bets. Now that BitMEX itself has become a liability, traders could easily turn to other crypto derivatives exchanges, including those that are decentralized in nature.

Decentralized exchange volume is already on the rise, according to Dune Analytics, approaching $ 23 billion last month, more than double August’s levels.

Vega is a protocol on which cryptocurrency derivatives can be created and traded. It serves as a sort of marketplace that connects traders and market makers on sophisticated financial products. The network is secured by proof of stake and is designed to pick up where Ethereum leaves off .

BeInCrypto sat down with Vega founder Barney Mannerings to discuss the protocol’s upcoming launch and what the BitMEX debacle means for the future of decentralized finance (DeFi).

BIC: Does what happened during the centralized exchange BitMEX strengthen the case for DEX?

Mannerings: “The BitMEX Saga Highlights the Mismatch between Open Source, Decentralized, Community-Led Projects and Profit-Seeking Enterprises, which exemplify the dangers of pure and uncontrolled capitalism, which have grown to the periphery ecosystem, and enhance it while doing nothing for the reputation of the space. It is clear to me that centralized exchanges are a springboard that has been needed, but also something the industry needs to move away from as quickly as possible. What is happening with BitMEX shows that we urgently need to build and move to reputable, business-grade decentralized solutions like Vega. “

BIC: Have you seen any of the BitMEX volume streams to your protocol?

Mannerings: “Vega is not online yet, so whether part of the BitMEX trading volume is transferred directly to Vega depends on the lifespan of BitMEX. In general, I think people are looking more cautiously at centralized derivatives exchanges, at least in the crypto space, and I think some of that volume will find its way into decentralized alternatives. When Vega launches, it will certainly be a catalyst for this, as it enables faster, more sophisticated and more capital efficient decentralized trading than any DEX today. “