BitMEX accused of unethical practices by Travis Kling

25 Sep, 2018
by David Borman
BitMEX accused of unethical practices by Travis Kling

The Daily Hodl is reporting on a recent podcast that had Anthony Pompliano interviewing Travis Kling, CIO at Ikigai Asset Management, on the current state of crypto. During the conversation, Kling states that BitMEX is currently participating in unfair practices that hurt retail investors and help "quants," short for "Quantitative analyst" and basically means people who do this institutionally.

The article contains a transcript of the part we are discussing, but the whole episode is worth a listen.

In a nutshell, what Kling is claiming is that at BitMEX, he believes they are analysing volume data to determine where various leveraged trades are stacked up. They can manipulate the price just enough to cause a whole bunch of trades to execute, all while the market is so congested (from everyone trying to respond to the market at once) that nobody can actually get out of any trades. Those who are behind this can make trades to benefit themselves because they knew it was going to happen.

It's just basic market manipulation and it isn't unique to crypto. In traditional stock markets, it would be illegal but since technically the laws haven't been made yet for crypto any company could do it.

Keep in mind this is just what one person believes and he did not actually provide evidence. If BitMEX or any exchange is operating in such a way it will hopefully come to light and be stopped. We can only wait and see.

Read more: BitMEX goes offline, Bitcoin spikes by $300; what does this mean for the market?

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