- According to them, this is a sign of a “mature” company
- And there are enough liquidity providers in the market
- Ironic that the CFTC’s lawsuit accused the exchange, among other things, of manipulating the market
- So the Acting. CEO comments on FT’s attack on Crypto.com
The Financial Times earlier this week published a scathing piece about Crypto.com. The article says that the exchange operates its own network of market makers in order to manipulate the market. The CEO of BitMEX, Stephan Lutz, commented.
It is noteworthy that in 2020, the CFTC filed a lawsuit against the exchange. It also mentioned that BitMEX has its own market-matching team, which now acts as “treasury,” according to the CEO.
Lutz noted that large CEXs should abandon this practice because there are enough liquidity providers in the market.. They bridge the “gaps” when there are not enough buyers or sellers.
“It is no longer necessary.. You’ve already gained a critical mass of (capital).” – He stressed in a commentary for The Block.
The shift from internal to external market makers e.g.. BitMEX CEO considers “a natural step” and a sign of a “mature” company. As for Arrakis Capital, which performed these functions for the exchange, now this organization is “technologically and structurally” separated from the platform.Besides Crypto.com, the recent high-profile cases on the subject of market-making can be distinguished from the CFTC lawsuit against Binance. The regulator filed it at the end of March. And the case is still pending.