BitMEX, which is the biggest crypto derivatives exchange in the world with daily trading volume of billions of dollars, has announced that they have launched Ripple (XRP) perpetual swap trading, offering up to 50X leverage when trading Ripple (XRP) versus the USD.
Simultaneously, the CEO of BitMEX, Arthur Hayes, seemingly refers to Ripple (XRP) as dogshit
This statement is reminiscent of when Hayes referred to Ethereum (ETH) as a double digit shitcoin, soon after launching Ethereum (ETH) Futures with 50X leverage.
After Hayes’ statement in August 2018 Ethererum (ETH) saw steep losses in the following weeks and months, and eventually did briefly enter double digit territory. It is quite possible that the Ethereum (ETH) Futures on BitMEX contributed to this sharp price decline, via the introduction of short selling pressure.
Likewise, the new Ripple (XRP) perpetual swaps on BitMEX are a double edged sword. Speculators could use these perpetual swaps to place highly leveraged bets that Ripple (XRP) will either go up or down, amplifying movements in the underlying Ripple (XRP) spot market.
That being said it seems Ripple (XRP) has rallied so far since the launch of perpetual swaps on BitMEX, with a 5% gain as of this writing.