Only 0.18% of All Bitcoins in Circulation is With BitMEX
James Lopp tweeted on December 26 about the upsurge of the dedicated insurance fund of the exchange by 62 percent, this year.
Historical records of the exchange’s Insurance Fund show that it was 20,776 BTC on January 1, 2019 and 33,449 BTC on December 26. As at the time of writing, its value is close 239 million USD.
Hence, the exchange possesses about 0.2 percent of all 18.1 million Bitcoins mined till now.
The purpose of the exchange’s Insurance Fund is to prevent auto-deleveraging in the position of traders and mitigate liquidation orders that are not filled prior to the auto-deleveraging system’s control.
The exchange maintained that the fund’s growth offers a remarkable guarantee level to winning traders, such that they can obtain the anticipated profits while reducing the drawback liability for losing traders.
That is, the dedicated insurance fund helps in covering losses when trading losses is more than the deposits of traders.
BitMEX is not the only exchange experiencing continuous growth of the number of Bitcoins. Binance is likewise experiencing the same trend. According to a report by Cointelegraph, a maximum of 7 percent of the total circulating supply of BTC was within the wallets of eight crypto exchanges two months ago.
Token Analyst maintained that leading international cryptocurrency exchanges like Poloniex, Kraken, Bitstamp, Bittrex, Bitfinex, BitMEX, Binance, and Huobi keep accumulating cryptocurrency in 2019 and were the largest HODLers, as at two months ago.
Featured image courtesy of Shutterstock. Source: Cryptopress.