It's been a rough 16-hour stretch for Bitcoin derivative exchanges. Particularly Deribit and BitMEX.
Deribit had "a problem with their BTC pricing index" after Coinbase went offline temporarily. This caused them to misprice BTC on the exchange, flash crashing to the mid $7,000s and liquidating every stop on the way down. As you can see from the tweet above, Deribit will reimburse the affected customers. Good on them. However, this is a pretty Busch League mistake to make for an exchange handling these types of levered contracts.
Deribit will reimburse over $1.3 million in losses from the BTC index calculation data issue around 21:00:00 UTC on October 31, 2019.
— Deribit (@DeribitExchange) October 31, 2019
The Deribit Insurance fund will not be used to cover these losses, but compensation will be covered by Deribit.
BitMEX just doxxed its users in the most outrageously incompetent way imaginable: forgetting to use blind copy on mass email. Someone must be cleaning out their desk already. https://t.co/KmARzImxnk
— Jake Chervinsky (@jchervinsky) November 1, 2019
BitMEX, who I imagine was giggling and experiencing some good schadenfreude at the expense of their competitor over night, woke up and decided to one-up Deribit's fuck up by doxxing a healthy chunk of their users. How did they do this? Their Community Manager pulled a classic "CC everyone instead of BCC". Incredible.
Tough day for the industry in the eyes of the mainstream. If anything, this highlights how early we are in all of this and how much room for improvement and competition there is. Hopefully this is a "couple steps backward followed by a few leaps forward" situation. We shall see.
Always remember. Not your keys, not your coins. Only keep as much as your willing to lose on these casinos.
Final thought...
French press coffee is pretty tight.
Enjoy your weekend, freaks.
