Ethereum (ETH) investors are now accusing leveraged cryptocurrency trading platform BitMEX of manipulating the price of ETH after the exchange’s CEO sent out a message prompting users to short the digital currency without ever having to own it.
— Arthur Hayes (@CryptoHayes) August 15, 2018
The controversy stems from the hundreds of millions in daily trading volume from BitMEX’s ETH/USD perpetual swap, which launched at the beginning of August and allows investors to short ETH with up to 50x leverage using Bitcoin. Now, many investors are claiming that the additional futures market has added significant downward pressure that facilitated the drop from $415 when the market launched to around $180 in a matter of weeks.
Adding to the issue is the language BitMEX CEO Arthur Hayes used when describing the new trading product to his platform’s users. Hayes went as far to publicly call ETH a “bigger shitcoin” than the dollar. This language has since sparked a significant backlash, especially on the EthTrader Reddit page.
However, there are multiple additional factors that have played into the ongoing price decline. One likely source of downward pressure is the more than $30 million in ETH that has been sold by blockchain projects in the past week. These sales have increased significantly in recent weeks as blockchain projects are beginning to run out of the millions of funds raised from previous ICOs.
More: EthTrader Reddit Page
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.