BitMEX CEO urges crypto exchanges to abandon internal market makers
In a recent statement, BitMEX CEO Stephan Lutz expressed his belief that crypto exchanges can operate without internal market makers, citing concerns raised by the revelation that Crypto.com has internal trading teams engaged in crypto trading activities. The disclosure has sparked apprehension regarding a potential conflict of interest at Crypto.com. Growing presence of external liquidity providers According to BitMEX CEO Stephan Lutz, the presence of high-frequency traders (HFTs) and proprietary trading firms in the cryptocurrency industry can effectively replace the role of internal market-making teams. Lutz believes that these external entities are capable of ensuring liquidity and bridging the gap between buyers and sellers during imbalances in the market. Lutz further highlighted that BitMEX itself had previously operated an internal trading entity called Arrakis Capital, serving as a major internal market maker. You might also like: Raoul Pal predicts ‘exponential ...