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A single block order taking out $100M of liquidity could move markets but it's not a priori that big. Bitmex has $1-2B of daily trade volume (per nomics) even a
by huac 5y ago
A single block order taking out $100M of liquidity could move markets but it's not a priori that big. Bitmex has $1-2B of daily trade volume (per nomics) even after all of the controversy, Binance has $50B and FTX has $11.5B.
- vngzs 5y agoYeah, but trading volume is not liquid cash. It's not the exchange's money. They make money on fees / commissions, but they can't just dip into the customer funds and use them to pay the government.
- rootsudo 5y agoYou'd think but look at Mt. Gox.
- ur-whale 5y ago> You'd think but look at Mt. Gox. Gox was a ridiculously amateurish affair run by a french pimply php hacker and manga lover teenager. Bitmex is in a slightly different league.
- gruez 5y ago>but they can't just dip into the customer funds and use them to pay the government. But if they have $1B-2B worth of trade volume daily and they charge a 0.1% fee per trade, wouldn't that mean they're generating $1M daily in revenue? From that, wouldn't it be reasonable to assume they have profits accumulated to pay the fine?
- schmichael 5y agoHow is trading volume related to cash liquidity? An exchange with 0 fiat on/offramps and no cash in the bank could still trade billions of USD worth of cryptocurrencies a day.
- gruez 5y ago>How is trading volume related to cash liquidity It's not. The parent commentis talking about the liqudity of the market as a whole (ie. what would happen if 100M worth of bitcoin was sold at once) >An exchange with 0 fiat on/offramps and no cash in the bank could still trade billions of USD worth of cryptocurrencies a day. It would presumably have millions of USD worth of crypto in their wallet (since they charge trading fees). They can take the crypto and dump it into the very liquid bitcoin market to turn it into cash.