BitMEX, a pioneer in the crypto world, gained significant traction as the first derivatives exchange in 2018 and 2019. It's renowned for innovating perpetual swaps, which eliminate futures' inconvenient expiry by introducing a continuous funding rate.

Stablecoins were less common during its inception at the time, leading BitMEX to accept Bitcoin and Ether as collateral. 

Benzinga recently sat with BitMEX CEO Stephan Lutz to discuss BitMEX's performance in recent years, the new perpetual contracts for the Shiba Inu ecosystem, the current state of the cryptocurrency market, and much more.  

Lutz pivoted to DeFi with BitMEX from TradFi three years ago. Since then, he has focused on driving BitMEX's development, financial growth and market share amid industry-shaking events. 

Here is an excerpt from the interview with him.  

Could you provide an overview of BitMEX's performance in recent years as one of the leading exchanges, and shed light on its future strategies?

BitMEX has maintained a strong business in recent years. Since pivoting back our business focus to crypto derivatives last year, our product portfolio and pipeline have grown significantly to cater to the evolving needs of professional traders. Here are some examples: Prediction Markets, a derivatives product to capitalize on real-world event outcomes, including Bitcoin ETFs; Guilds, a new social trading feature where traders can collaborate and earn rewards by trading as a team; and the world’s first Bitcoin margined inverse perpetual swap: XBTETH.

1. Also Read: Bitcoin Dip Doesn't Worry JPMorgan Analysts: 'We See Limited Downside To Crypto'

2. Traders can take a position on the ratio between Bitcoin and Ethereum, taking advantage of the competition for market cap between the two largest cryptocurrencies. 

I'm interested in learning more about the new perpetual contracts for the Shiba Inu ecosystem that BitMEX introduced last month. Could you provide additional details?

BitMEX launched two SHIB perpetual contracts in August, SHIBUSD and SHIBUSDT, where traders can enjoy up to 33x leverage — one of the highest max position sizes in the industry. 

Could you share some updates on BitMEX's solution known as Guilds, which was announced in July? Where does this initiative currently stand?

Guilds is a new social trading feature on BitMEX launched in July. The feedback has been positive from the community. Our traders are active on this feature, and within the first month, generated over $400 million of trading volume. The performance of the Guild members is better than non-Guild members, on average earning $375 more in PnL each week. 

BitMEX Co-founder Arthur recently commented on the ongoing Bitcoin bull market. What is your perspective on the current state of the Bitcoin market in light of his remarks?

We are optimistic. Bitcoin's sentiment remains strong, predominantly driven by increased institutional interest and adoption. The upcoming Bitcoin halving in 2024 and results for Bitcoin ETFs are all positive developments that could boost demand and increase the chances of a bull run.  

What's the current state of the cryptocurrency market, and where do Bitcoin and other cryptocurrencies stand regarding their prospects and challenges?

The market is moving steadily, and Bitcoin has shown resilience, outpacing traditional asset classes. We expect more traction and volatility with the highly-anticipated halving in 2024. 

A significant challenge is regulatory uncertainty. Clear guidelines will help protect traders and investors, and establish industry standards. Asia is particularly active in creating a more crypto-friendly environment (e.g. Singapore and Hong Kong). Interests from large institutional institutions are still progressively growing in digital assets and crypto technology, such as Google Cloud and PayPal, which would encourage more building activities and adoption.

How do you envision the crypto industry's progress in the next five years, and what role will global regulations play in shaping its future?

In the next five years, we anticipate mass mainstream adoption as a clearer regulatory framework is established due to industry pressure and institutional investor adoption rates continue to soar.

Now Read: Crypto Analyst Says Bitcoin Bull Market Is On The Horizon: 'This Is The Beginning'

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