The BitMEX platform's derivatives are especially harmful to unregulated markets as these futures are settled in asset (BTC) instead of fiat.
When a contract settles or is sold on a BTC settled futures platform, the winner gets BTC (both short and long winners get BTC). The spot (fiat) market controls the settlement price and cannot be bought up with BTC. It can ONLY be sold down with BTC.
In a normal market there would be competing long traders offsetting the short traders. These long traders would be attempting to manipulate the spot up and therefore profit from their futures contract longs. This cannot happen in a BTC settled futures market without massive outside cash reserves. There is no way for a long trader to make fiat in order to buy the spot market up, they can only make BTC. The manipulation process ONLY works to the downside on BitMEX BTC settled futures. Since BitMEX is far and away the most volume, there is no competition for the short manipulators.
The manipulation cycle works like this:
1. They shorted futures, then dumped their BTC on the spot market causing their short futures positions to be profitable 2. They then close some futures and are paid in BTC from the people who took the 'long' side of the contract. 3. They open more short futures contracts and then dump the BTC they just earned on the spot market Finex, Stamp, Coinbase causing the new short futures contracts to be profitable.
The amusing part of this is that they are using the LONG traders own BTC to dump on the spot market causing the LONG trader to lose more money on the futures contract they hold.
The thing is at lower prices the buying power becomes too great and this no longer works.
Nathan Torres
except the small fact that NOBODY IS FUCKING BUYING
Bentley Wright
If btc gets any where near 3 digits the buying pressure will be so immense that a whale would have to deplete his stack to get the price any lower and even then that would get bought up. For these whales its about how long can they keep everyone else on the side while they accumulate through doing this or just keeping the price low.
Matthew Ortiz
yep. Btimex getting shut down would be the most bullish thing for btc. if ever that happens anons, you know it's time to go all in.
Landon Allen
I don't understand a single word
Luke Martinez
Imagine if became the next gox instead.
Kayden Jenkins
12/9/19 6:11 Well boys apparently this is when its happening.
Lincoln Nelson
im new in crypto, can i make small gains with bitmex?
Ryder Taylor
bitmex has been around since 2014. Just accept the fact that no one wants to buy your bags anymore.
Lincoln Morris
Need another outside force like BAKKT/ETF or alts need to decouple from BTC, all of these might take a while.
Isaiah Turner
no, it is run by a nigger. when did any nigger ever not steal everything they could
James Richardson
Why can't a trader do the converse and open a long and then buy a ton of BTC?
Nathan Martinez
wat?
Eli Gonzalez
that just means btc is going to its fair market price. You can't expect speculation to prop the price up forever.
Gavin Johnson
Is having a lower bound, and an upper bound, enough utility for Core? Pink Sheet Stocks are likewise infinitely naked shorted. Core certainly solves settlement, but the Market Makers still have delivery/oracles centralized.
Lincoln Cooper
thyat trader needs to have a ton of fiat. the shorters only need btc
Jaxson Cox
btc = fiat
Nathaniel Harris
right but if you're going LONG
you're rewarded with btc...
how do you get more fiat to buy btc's?
>sell your btc you're dumping a tonne of btc aint helping your long
whereas with short people, they spend btc selling AND are rewarded with btc
This is the most retarted kike brainwash shit I have ever heard. Futures settled in BTC are bullish as fuck, the reason BTC is dumping is cboe and cme futures allow the printing of Bitcoin with cash in cash out contracts. I am in utter disbelief that someone this stupid could possibly convince so many of you brainlets that this this is what is happening.
Don't sell your BTC for the fake kike index price of the cboe and cme futures mark.
