BitMEX is expanding from its core crypto perpetual contracts offerings and launched a spot exchange on Tuesday. It is aiming to lure retail crypto traders when the cryptocurrency market has lost significant value from its peak.
The launch was not abrupt, as Alexander Höptner, the CEO of BitMEX’s parent, 100x, revealed the company’s plan to dive into the crypto spot trading market early last year. Höptner replaced Arthur Hayes for the apex position in 2020.
Initially, BitMEX’s spot crypto platform will support trading with seven digital assets. It includes Bitcoin and Ethereum, along with other cryptocurrencies like Chainlink's LINK, Uniswap's UNI, Polygon's MATIC, Axie Infinity's AXS and Bored Ape Yacht Club's APE token.
All of the listed cryptocurrencies will be traded against tether (USDT), the USD-pegged stablecoin. Additionally, the exchange partnered with fiat gateway provider, Banxa, enabling traders to purchase the stablecoin .
Everyone Wants Spot Services
BitMEX, launched in 2014, is the longest-running crypto futures trading platform. It made its name by offering crypto perpetual contracts, which are basically futures contracts without any expiry date.
Though the exchange dominated the crypto derivatives market for years with its low margin and high leverage offerings, it has lost ranks in its core market to players like Binance and OKX. Now, it is planning to become a 'top 10 global spot exchange'.
Moreover, BitMEX is one of the controversial crypto exchanges. It settled with the regulators in the United States for illegally offering services in the country, paying $100 million. Furthermore, the three co-founders of the exchange were slapped with a separate $30 million fine and are now awaiting the sentencing of criminal charges against them to which they have already pled guilty.
Meanwhile, other crypto derivatives platforms are moving towards the spot market. Bybit, which is another leading crypto derivatives exchange, also launched spot trading services last year.
