BitMEX CEO Urges Crypto Exchanges to Abandon Market Makers
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Stephan Lutz, the acting CEO of BitMEX, has stated that Bitcoin exchanges should refuse the services of internal market makers, which profit from prop trading.
He has emphasized that high-frequency traders and private trading were enough for large platforms. His words come after Crypto.com attempted to launch such a unit, claiming to have employed traders.
Arrakis Capital, a separate legal entity from BitMEX, serves as the platform’s treasury department and generates up to $100,000 per month from holding Treasury bills.
With this in mind, Lutz warned that exchanges with low transaction fees may be deemed as a “red flag” as their primary role could be to attract trade flow for the market maker.
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