Now Bitmex Research has joined the discussion, and although its report will not be the last word on this issue, it could silence some of the most incisive criticisms of the company and its confusing practices. Blessed with time, budget and the platform to dive into crypto currency projects, Bitmex Research team members are able to go as far as other investigative reporters cannot or do not want to. His forensic examination of Ripple, presented a fortnight ago, won countless accolades, and his report on Tether is another resounding success.
Margin trading is the method of conducting asset purchase/sale transactions (in our example bitcoin ) using money that is provided to the trader as a secured loan. The term “margin” itself signifies a promise that a merchant must provide to the exchange to receive a certain amount. Leverage is the borrowed financing that the exchange gives the user to buy Bitmex Signals. But it is expressed in the form of a coefficient.
- Take profit (Take profit) is an outstanding application that runs when the market price reaches the profit. When defining a TP, we decide where our target level will be and if the price reaches that level, the order will be activated and profit will be obtained.
- The long position is a position that a trader opens with the hope of making a profit from the growth of the market. The trader concludes an agreement to buy futures at a cheap price, expects the price to rise, sell at a higher price and thus profit from the growth of the market.
- These statements add to the growing consensus that Tether probably does have the assets to back his tokens with dollars, but that he is still susceptible to normative pressure, especially that emanating from the United States. Most critics are not as vehement as Tether’s maximalist Bitfinexed, the pseudonymous Twitter account synonymous with a scrutiny of company operations.
Bitmex: Tether does not need a blockchain
When investigating the fraud that occurred in November that resulted in the loss of $ 31 million USDT and the subsequent isolation by Tether, Bitmex Signals writes: “The scam incident showed that Tether is effectively in absolute control of the ledger, as they can forcing a hard fork at will and reversing any transaction … This raises the question of why Tether bothers to put the database in the Bitcoin and Ethereum blockchains at all – it would be much more economical for Tether to create its own database public without the need to pay fees to the miners “.
Bitmex Signals Research then acknowledges Tether’s famous lack of transparency, but asserts that “The lack of transparency does not indicate fraud”. This coincides with a recent report by security researcher Nicholas Weaver. Bitmex also agrees with Weaver by saying that Tether is prone to money laundering issues and accusations of allowing criminal acts due to the degree of anonymity provided by the service:
“The characteristics [of Tether] make it potentially attractive to criminals, as is the case of Bitcoin … It is likely that the regulators are not particularly happy with this and the banks have a sceptical attitude towards Tether. Tether also requires the use of a bank, to maintain the USD reserves required to support Tether. Therefore, many banks may be cautious about this issue and if Tether is accepted as a client, this could violate the bank’s compliance procedures, such as the rules established to prevent money laundering. ”
A shortage of audits, but an abundance of money
Calculating that Bitmex Signals has earned $ 10 million in exchange rates per day during the peak of bitcoin-mania, Bitmex believes that Tether most likely has more than enough assets, directly, or indirectly through Bitfinex, should it arise. the need. The report then deals with rumours that Tether is seeking to establish banking operations in Puerto Rico, where the regulators have a less invasive position.
The short position is a position that a trader opens with the hope of profiting from a decline in the price of bitcoin. To do this, the trader takes the bitcoin futures borrowed from a broker, sells them on the stock exchange at a higher price, expects the price of the future to fall, buys contracts at a cheaper price than he has bought them, gives the loan back to the broker, and maintains as profit the difference between the expensive sale and the cheap purchase. Thus, the trader manages to profit from the fall of the market.
The prediction market is not necessarily indicative of the level of support for segwit blocks or higher since traders are betting on activation. Therefore, it can help suggest the probability of activation of any, with traders who do not necessarily support segwit or larger blocks, however, betting if they think they have information that the broader market does not have. At this point, Hayes said that they have “tried to work out the prediction markets to be as objective as possible,” but a good objective measure of support levels remains deficient despite two years of debate.
However, many may see these two new futures as more impartial and fair than what BitFinex recently offered, since the terms appear to be what one might expect from a Bitmex Signals reading. Potentially offering the market additional information about the developments in the scalability debate!
The expansion of Bitmex Signals in general and in future bitcoin seems to be considerable, however, Hayes says that “our Bitcoin / USD exchange is one of the most liquid Bitcoin / USD commercial products in the market”. When asked if they charge traders through spreads such as traditional currency platforms, Hayes said “we do not charge per transaction. We do not negotiate with our customers. ” Of course, for the market to have some confidence that it is, in fact, the case of independent audits would be very useful, as well as the licensing. On this last point, however, BitMEX could be excused because CFTC continues to make it very difficult to provide margins or futures in a fully regulated manner.