A newsletter was published by Arthur Hayes, CEO & co-founder of BitMEX, one of the largest exchange platform for the cryptocurrency, on 14th August 2018. “Ether is a double-digit coin” was the most crucial part of this letter. The newsletter stated “BitMEX has developed a method to imitate the same Bitcoin-margined perpetual swap yet on ETH/USD through a Quantico pricing model. This creation is ETH/USD perpetual swap. Just in the matter of two weeks, this product became the most liquidity ETH/USD duo worldwide and had proven to be an essential instrument in conjecturing and hedging the ETH/USD price pair.”
The newsletter also stated the BitMEX’s ETH/USD swap for the past 24 hours, which has traded about 800,000 ETH. It did become the next most liquid ETH/USDT and ETH/USD markets, Binance and Bitfinex each traded around 500,000 ETH in the same period.
The newsletter gave the details of how things started from PepeCash in early 2017. PepeCash is a “rare pepe” memes which are to be hashed onto a blockchain. He also assured that it could be the next killer app. He stated “Jealous traditional VCs of altered the portions of their funds into poorly designed hedge funds so that they could punt shitcoins.”
Currently, Ether is moving towards $200. As a result, many token projects are dejected 50%, or the worst that could happen is they are a little above zero. Arthur raised a few questions
- Did any of the funds recognise any of their exceptional 2016 profits?
- Can VC-turned-hedge-funds-punters expressively handle market-to-market damages?
- How many token projects indeed sold large or hedged portions of the Ether they elevated?
These are few questions only the future will answer. The newsletter contained much more than just raising questions on Ether. The VCs are positive about their investments due to the illiquidity of their investments, and they can still get paid by showing outstanding results on paper.
According to him, the Ether goes from a three digit to a two-digit Shitcoin in the current market.
You can read more in his newsletter.