Bitcoin Insurance Funds Take A Beating
Keep the windows shut over there!
Bitcoin Insurance Funds Take a Beating as Markets Rout
“Between March 11 and 12, data from crypto derivatives trading platform BitMEX indicates that its daily insurance fund dipped only slightly — from 35,508 BTC to 33,881 BTC.
As of press time, the fund’s balance is yet to be updated for March 13, preventing any conclusive assessment of the impact of the markets’ turmoil.
Data from crypto exchange OKex shows that 1,009.5 BTC was deposited into its BTC/USD Futures Insurance Fund, with 475.2 BTC thereafter withdrawn to cover a bankruptcy loss.
Between Feb. 24 and March 9, no withdrawals from the fund had been made at all.
The balance for Huobi’s Bitcoin Insurance Fund, meanwhile, shows an increase between March 12 and 13, from 1,121 BTC to 1,327 BTC.
The exchange, however, does not provide a breakdown of the data that would reveal the pattern of withdrawals and deposits within the same time period.”