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🧵 BitMEX shuts down: the exchange that invented sustainable contracts, reaching the end after 11 years
Today’s biggest news in crypto isn’t price movement—it’s the end of an era.
BitMEX announced that it will close all operations on September 23, 2026. New registrations have been paused, opening new positions will be restricted starting August 26, and all remaining contracts will be forced to be closed before September. If users don’t withdraw in time, they will be charged a monthly $50 fee or 1% annually as a custody fee.
For those not familiar with its history, BitMEX might just seem like “yet another exchange that rug-pulled.” But its status goes far beyond that.
▎What did BitMEX change?
In 2014, Arthur Hayes, Ben Delo, and Samuel Reed founded BitMEX in Seychelles. They did something that changed the entire crypto market: inventing perpetual contracts (Perpetual Swap).
What are perpetual contracts? Simply put, they’re like futures but with no expiration date. If you’re bullish, you go long; if you’re bearish, you go short—and you can use leverage to amplify both gains and risks. BitMEX supports up to 100x leverage, meaning $100 margin can control a $10,000 position. If the price moves just 1% against you, your margin is wiped out.
Why is this product so important? Because it gives traders a straightforward way to short Bitcoin. Before BitMEX, there was basically no convenient way to short BTC. Also, perpetual contracts use a funding rate mechanism (settled every 8 hours—longs pay shorts or vice versa), keeping contract prices close to spot prices.
Today, perpetual contracts are absolutely dominant in the crypto derivatives market. The core product lines of Binance, Bybit, and OKX are all built on the framework created by BitMEX.
▎How crazy was the peak?
At the 2019 bull market peak, BitMEX’s annual trading volume exceeded $1 trillion (source: CoinDesk / Moomoo industry report), accounting for about 57% of the global crypto derivatives market share. In July 2018, daily trading volume hit $8 billion, with daily turnover exceeding 1 million Bitcoins.
Back then, for every two crypto derivatives trades, one was on BitMEX. For Asian traders, BitMEX was an early-entry platform for BTC trading. Many people’s first experience with leveraged trading—and their first liquidation—happened on BitMEX.
▎Why did it decline?
Three main reasons:
1️⃣ Regulatory crackdown — In 2020, the U.S. Department of Justice indicted BitMEX for violating the Bank Secrecy Act (BSA), accusing them of failing to implement adequate anti-money-laundering measures between 2015 and 2020. All three founders resigned. In 2024, BitMEX officially pleaded guilty. This legal battle consumed a massive amount of resources and market trust.
2️⃣ Competition overtook it — Binance took market share with lower fees, deeper liquidity, and the rapid listing of more coins. Bybit focused on the Asian market. BitMEX’s advantage was gradually eaten away step by step.
3️⃣ The rise of DeFi derivatives — Decentralized exchanges like Hyperliquid and dYdX lured away a large number of professional traders. With zero KYC, transparent on-chain settlement, and self-custody, these advantages became more and more mature on DeFi derivative platforms, attracting many users who previously used CEXs.
On June 29, BitMEX first sent away the CEO, CFO, and growth head. Three weeks later, it announced the shutdown.
▎Something worth honoring
After 11 years in operation, BitMEX was never hacked, and it never lost any user funds. In an industry where things kept happening in rotation—Mt. Gox, FTX, Bitfinex—this security record deserves respect.
Its problems were all about legal compliance and business competition—not security or technology.
▎Impact on the market
In the short term, BitMEX’s closure will force a large number of positions to move to other exchanges. Binance and Bybit may absorb most of the liquidity. Keep an eye on the two key dates—August 26 and September 23—because short-term volatility could occur.
In the long term, this marks a generational change in the crypto derivatives market. The first generation of centralized derivatives exchanges has completed its historical mission. While the perpetual contracts product has been fully adopted by the market, the people who created it have been left behind by time.
That’s the dilemma of innovators: you create a product that changes the world, but in the end, you’re not the one who benefits.
BitMEX’s legacy isn’t a company—it’s a category of product. Perpetual contracts will continue to exist; they just won’t need the name BitMEX anymore.
Which exchange did you first use perpetual contracts on? Feel free to share your BitMEX story 👇
#BitMEX #Crypto #PerpetualSwap #比特幣 #cryptocurrency
Today’s biggest news in crypto isn’t price movement—it’s the end of an era.
BitMEX announced that it will close all operations on September 23, 2026. New registrations have been paused, opening new positions will be restricted starting August 26, and all remaining contracts will be forced to be closed before September. If users don’t withdraw in time, they will be charged a monthly $50 fee or 1% annually as a custody fee.
For those not familiar with its history, BitMEX might just seem like “yet another exchange that rug-pulled.” But its status goes far beyond that.
▎What did BitMEX change?
In 2014, Arthur Hayes, Ben Delo, and Samuel Reed founded BitMEX in Seychelles. They did something that changed the entire crypto market: inventing perpetual contracts (Perpetual Swap).
What are perpetual contracts? Simply put, they’re like futures but with no expiration date. If you’re bullish, you go long; if you’re bearish, you go short—and you can use leverage to amplify both gains and risks. BitMEX supports up to 100x leverage, meaning $100 margin can control a $10,000 position. If the price moves just 1% against you, your margin is wiped out.
Why is this product so important? Because it gives traders a straightforward way to short Bitcoin. Before BitMEX, there was basically no convenient way to short BTC. Also, perpetual contracts use a funding rate mechanism (settled every 8 hours—longs pay shorts or vice versa), keeping contract prices close to spot prices.
Today, perpetual contracts are absolutely dominant in the crypto derivatives market. The core product lines of Binance, Bybit, and OKX are all built on the framework created by BitMEX.
▎How crazy was the peak?
At the 2019 bull market peak, BitMEX’s annual trading volume exceeded $1 trillion (source: CoinDesk / Moomoo industry report), accounting for about 57% of the global crypto derivatives market share. In July 2018, daily trading volume hit $8 billion, with daily turnover exceeding 1 million Bitcoins.
Back then, for every two crypto derivatives trades, one was on BitMEX. For Asian traders, BitMEX was an early-entry platform for BTC trading. Many people’s first experience with leveraged trading—and their first liquidation—happened on BitMEX.
▎Why did it decline?
Three main reasons:
1️⃣ Regulatory crackdown — In 2020, the U.S. Department of Justice indicted BitMEX for violating the Bank Secrecy Act (BSA), accusing them of failing to implement adequate anti-money-laundering measures between 2015 and 2020. All three founders resigned. In 2024, BitMEX officially pleaded guilty. This legal battle consumed a massive amount of resources and market trust.
2️⃣ Competition overtook it — Binance took market share with lower fees, deeper liquidity, and the rapid listing of more coins. Bybit focused on the Asian market. BitMEX’s advantage was gradually eaten away step by step.
3️⃣ The rise of DeFi derivatives — Decentralized exchanges like Hyperliquid and dYdX lured away a large number of professional traders. With zero KYC, transparent on-chain settlement, and self-custody, these advantages became more and more mature on DeFi derivative platforms, attracting many users who previously used CEXs.
On June 29, BitMEX first sent away the CEO, CFO, and growth head. Three weeks later, it announced the shutdown.
▎Something worth honoring
After 11 years in operation, BitMEX was never hacked, and it never lost any user funds. In an industry where things kept happening in rotation—Mt. Gox, FTX, Bitfinex—this security record deserves respect.
Its problems were all about legal compliance and business competition—not security or technology.
▎Impact on the market
In the short term, BitMEX’s closure will force a large number of positions to move to other exchanges. Binance and Bybit may absorb most of the liquidity. Keep an eye on the two key dates—August 26 and September 23—because short-term volatility could occur.
In the long term, this marks a generational change in the crypto derivatives market. The first generation of centralized derivatives exchanges has completed its historical mission. While the perpetual contracts product has been fully adopted by the market, the people who created it have been left behind by time.
That’s the dilemma of innovators: you create a product that changes the world, but in the end, you’re not the one who benefits.
BitMEX’s legacy isn’t a company—it’s a category of product. Perpetual contracts will continue to exist; they just won’t need the name BitMEX anymore.
Which exchange did you first use perpetual contracts on? Feel free to share your BitMEX story 👇
#BitMEX #Crypto #PerpetualSwap #比特幣 #cryptocurrency
The floors account for 57% of the crypto derivatives market as it prepares to switch off the lights — BitMEX officially announced it will cease operations in September 2026 after 11 years of dominating the scene. Users must close their positions and withdraw assets in advance; otherwise, they will be charged a $50/month maintenance fee or 1%/year.
BitMEX’s demise is not coming out of the blue. Liquidity, market makers, and whales have gradually moved to exchanges with deeper order books and fewer legal barriers. Just in the past three weeks, the CEO, CFO, and head of growth have all stepped down at the same time. The 2019 peak of $1 trillion in trading volume is now only a memory.
For traders, this is an expensive reminder: no exchange lasts forever. Liquidation can cause local volatility for BTC, but in the long run, it’s the cost of delayed innovation and being trapped in legal proceedings. Do your own research, manage risk, and never keep all your assets on a single platform—those are survival lessons.
#BitMEX #BTC #PerpetualSwap #CryptoFutures #DYOR
BitMEX’s demise is not coming out of the blue. Liquidity, market makers, and whales have gradually moved to exchanges with deeper order books and fewer legal barriers. Just in the past three weeks, the CEO, CFO, and head of growth have all stepped down at the same time. The 2019 peak of $1 trillion in trading volume is now only a memory.
For traders, this is an expensive reminder: no exchange lasts forever. Liquidation can cause local volatility for BTC, but in the long run, it’s the cost of delayed innovation and being trapped in legal proceedings. Do your own research, manage risk, and never keep all your assets on a single platform—those are survival lessons.
#BitMEX #BTC #PerpetualSwap #CryptoFutures #DYOR
BitMEX is about to shut down – the exchange launched 100x leverage perpetual swaps
- BitMEX, the exchange co-founded by Arthur Hayes in 2014, is announcing that it will shut down.
- This exchange has reshaped the global crypto market by introducing perpetual swaps with leverage up to 100x.
- The closure of BitMEX may impact the crypto derivatives market and traders using high leverage.
#BinanceSquare #CryptoNews #BitMEX #Derivatives #PerpetualSwap
$btc $eth
vlikevn Titanbot
Source: CoinDesk
- BitMEX, the exchange co-founded by Arthur Hayes in 2014, is announcing that it will shut down.
- This exchange has reshaped the global crypto market by introducing perpetual swaps with leverage up to 100x.
- The closure of BitMEX may impact the crypto derivatives market and traders using high leverage.
#BinanceSquare #CryptoNews #BitMEX #Derivatives #PerpetualSwap
$btc $eth
vlikevn Titanbot
Source: CoinDesk
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