BitMEX not likely to add another cryptocurrency, CEO Arthur Hayes explains

The cryptocurrency space has been evolving constantly over the years, with development in technology being its main focus. Arthur Hayes, the co-founder and CEO of BitMEX, joined Luke Martin, an analyst to talk about developments in the crypto-space and the future of BitMEX. The co-founder answered the much-asked question regarding the addition of another cryptocurrency to BitMEX, in the interview.

BitMEX is popular among Asian traders and there are numerous new tokens coming out; Luke quizzed Arthur about adding more tokens to BitMEX instead of the current list that has only four cryptocurrencies- Bitcoin [BTC], Bitcoin Cash [BCH], Litecoin [LTC], and XRP. Hayes informed that they would not be adding any cryptocurrency because derivatives required sufficient liquidity in the spot market.

Hayes said,

“So you know, in my, in my opinion, the futures market should always be tighter and trade larger than the underlying of this derivative. And that only happens if you have sufficient liquidity in the spot market.”

Hayes explained that if BitMEX listed a random coin from CoinMarketCap, the market makers would be unable to hedge the risks. Binance has a long list of coins where the market makers want to price a derivative, in such a case, it will spread too wide, which according to the CEO, is terrible for clients. He explained,

“From a client perspective, as a terrible experience, I’m treating a leveraged product that has a wider spread, then the underlying on the spot market and I’m just increasing my risk of getting liquidated. And that’s something that we don’t want to do.”

However, when BitMEX would add a new product, the market makers would be able to make ‘good type prices’ for their clients. The CEO also informed that BitMEX would never have as many coins as Binance due to the same reason.

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