One can quickly find traders who have excelled over a period of time, whether it's...
Google has added a countdown timer to mark the time until the upgrade as a...
BitMEX CEO warns that Ethereum Merge could cause high volatility
The Ethereum Merge is one the most anticipated events within the crypto space for this year. Crypto firms are always on the lookout to spot any issues that might arise as the new upgraded Ethereum network becomes operational.
Alexander Hoptner (CEO of BitMEX crypto exchange) spoke to Cointelegraph about how the trading platform is preparing the Merge. He also discussed institutional adoption potential after the transition from proof of stake (PoS) and his thoughts on Bitcoin ( BTC and Ether ( ETH).
Hoptner explained that, aside from making sure all boxes are checked on company preparations for big events ahead of them, it is important to be attentive to what could happen and ensure that the services they provide are functioning properly. He explained:
“You must be just, let’s call it, awake and watch what happens. There is a possibility of high volatility. You need to ensure that your services are available. […] We do not expect major disruptions other than volatility.”
BitMEX’s executive said that a fork would be successful if it was supported by a strong community. Hoptner pointed out that forks are at risk if there isn’t enough support from miners.
The issue of institutional adoption following the Merge was another topic discussed during the interview. The BitMEX CEO feels that PoS Ethereum is better for organizations than major players who are increasing their services to institutional players. This is because it addresses the main environmental narrative with which institutions are most concerned. He stated:
“I am certain that this will push for institutional adoption as well as mass market adoption, because […]nerally, the current generation pays close to the efficiency, environmental development.”
He also pointed out that large financial institutions are already experimenting with crypto, primarily BTC and ETH. Hoptner stated that many institutions already offer 1% to 22% crypto in their portfolios and that he expects this trend to continue.
Related: ETH Merge – CoinGecko founder shares his strategy for forked tokens
Contrary to popular belief that the market is at the moment, BitMEX CEO shared his team’s belief that the current market conditions are not bearish. Instead, he believes that there is a small correction in traditional finance. He stated that:
“Beforehand it was extremely overheated on the market. We were too fond of money, and this is now a minor correction. However, we are extremely bullish about Bitcoin and ETH, particularly for proof-of stake.
Hoptner is positive that the Ethereum Merge is a positive step in the industry and reiterated his team’s belief in the value of ETH. He also stated that Ethereum has a strong community and ETH could eventually surpass BTC. He stated that he believes it could surpass Bitcoin in relative growth.
The Ethereum Merge is one of the most anticipated events in the crypto space this year....
If the winter ahead proves to be a significant test for Europe, Bitcoin ( BTC),...
Vitalik Buterin, Ethereum founder, and Brian Armstrong, Coinbase CEO, believe that a gradual shift in...
Blockchain platforms have become the center of many tech conversations around the world in the...
Input Output Hong Kong, the blockchain company behind Cardano, has revealed the status of three...
The upcoming ETH Merge, which is one of the most anticipated events within the crypto...
According to leaked documents, FTX revenues grew by 1000% in a single year.
FTX was one of the few crypto exchanges that had a front row seat to the crypto hype in 2021. This was back when Bitcoin ( BTC_) and other cryptocurrencies reached their highest. According to internal documents, FTX’s revenue grew 1000% in 2021 due to massive customer onboarding, partnerships and sponsorships.
CNBC claimed access to documents in financials for FY 2020-2021.
The revenue breakdown shows a 1842.85% rise in operating income for FTX from $14 million up to $272 millions in one year. The net income of the crypto exchange was $388 million, an increase of 2182.35% over last year’s $17million.
According to reports, FTX made $270 million during the first quarter 2022. The exchange’s performance during the crypto winter has yet to be disclosed. Despite the excellent first quarter performance, the crypto winter has likely had an impact on the growth trajectory due to multiple market crashes.
Further, the report claims that FTX had $2.5 billion in cash at the end of 2021 and a 27% profit margin.
Cointelegraph has yet to hear back from FTX on its request for comment.
Related: FTX US is among five companies that will receive cease-and-desist letters from FDIC
Binance CEO Changpeng Zhao has recently expressed concern about jitters. This is a phenomenon in which an existing trade order is delayed to make way for newer trades.
I just learned a new term, jitters. Sometimes your orders may be delayed for a while on one exchange. However, other orders may come in. This happens so often on an exchange that traders invented a term for it: jitters. (Front running)
— CZ Binance (@cz_binance).
August 19, 2022
Although CZ didn’t explicitly target any specific exchange during the discussion it did assume that it was aimed towards FTX. “All of you guys knew, and didn’t mention anything. He added that we must fight the bad players.
FTX was among the many crypto exchanges with a front-row seat to witness the crypto hype...