BitMEX, the world’s largest cryptocurrency exchange, now holds 0.18% of all Bitcoins (BTC) in circulation, by daily trading volume to date.
CoinTelegraph: "BitMEX cryptocurrency exchange now holds 0.18% of all mined Bitcoins https://t.co/eIHGj6lDrw" #news $news #crypto $crypto #cryptonews #cryptocurrency #cryptocurrencynews — Crypto Business (@cryptobusiness1) December 28, 2019
On December 26, it has been reported that James Lopp, the CTO of Casa, the New York-based crypto custody startup, pointed out that BitMEX’s dedicated insurance fund has surged 62% in 2019.
The @BitMEXdotcom insurance fund grew 62% in 2019 and now holds 0.18% of all BTC. https://t.co/GZV1nt7Ltf pic.twitter.com/Cx7yDiMJLx — Jameson Lopp (@lopp) December 26, 2019
However, according to daily historical records of the BitMEX Insurance Fund, the balance of the fund has grown from 20,776 BTC on January 1, 2019, to 33,449 BTC on December 26, worth around $239 million at press time.
As such, the world’s top Bitcoin exchange now owns nearly 0.2% of all 18.1 million Bitcoins mined to date.
It has been analyzed that the BitMEX Insurance Fund is used by the crypto exchange to avoid auto-deleveraging in traders’ positions and alleviate unfilled liquidation orders before they are taken over by the auto-deleveraging system.
According to the firm, the growth of the fund provides a significant level of assurance to winning traders that they will be able to attain their expected profits, at the same time limiting the downside liability for losing traders.
<img src="https://www.cryptonewspoint.com/wp-content/uploads/2019/12/bitcoin-price-latest-2019-1024x768.jpg" alt="" class="wp-image-7977 lazyload" width="425" height="319" />
Essentially, BitMEX uses its dedicated insurance fund to cover losses in case trading losses exceed traders’ deposits.
While the amount of Bitcoin owned by BitMEX continues to grow, there is a similar trend on other major crypto exchanges including Binance, the major crypto exchange.
Thus, 7% of the entire circulating supply of Bitcoin was held in the wallets of eight cryptocurrency exchanges in October 2019.
Source: bitmex.com | cointelegraph.com