Crypto

BitMEX Trading Engine Issue Triggers Concerns Over XBT/USD Liquidations

When it comes to dealing with the BitMEX platform, a lot of users are rather dismayed. Yesterday’s sudden outage triggered a brief visual XBT/USD price drop to $0, prior to the trading engine going offline. 

Centralized trading platforms often struggle to keep their service accessible at all times.

Another bad day at the Office for BitMEX

Whether it is a direct exchange or derivatives platform, things can go haywire when users least expect it.

In the case of BitMEX, the trading engine went offline yesterday evening for no apparent reason.

On the frontend, this made it appear as if the price of XBT/USD dropped to $0 in quick succession.

According to the company, the price crash didn’t actually affect the backend, nor should it have triggered any liquidations.

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Whether that latter part is effectively true, will become more apparent in the next few days.

BitMEX is already facing a lot of backlash and legal trouble for its business practices.

Blackouts like these will do nothing to improve the company’s reputation, as it will more than likely have the opposite effect.

How all of this will affect the future of BitMEX, is a different matter altogether.

It is evident that the cryptocurrency industry still faces many issues, primarily due to centralized service providers. 

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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