Victor Ugochukwu · Dec 14, 2020 . 5min read
BitMEX is investing in South Africa’s biggest exchange – here’s why
BitMEX spots an opportunity in South Africa and looks to expand its overseas operations by filling in a gap left behind by unregulated exchanges.
By Shilika · Jul 24, 2020 . 4min read
BitMEX has invested in South Africa’s largest Bitcoin exchange, VALR, through its venture arm 100x Ventures. The funding round led by 100x managed to raise $3.4 million for VALR. The latter has more than 40,000 users and claims to have processed more than 13,000 BTC over the last month.
BitMEX is interested in South Africa and VALR for two reasons. Namely, it wants to expand its overseas involvement, and it recognises the growing demand for regional exchanges and trading services. The investment also allows BitMEX to diversify its business.
BitMEX is currently the largest Bitcoin futures market in the world. Its open interest is more than $1.02 billion.
In countries like South Africa, peer to peer Bitcoin markets are growing in popularity. This is due to the lack of proper regulation in exchanges. Users prefer to trade directly as a result. BitMEX has recognised that these regions are calling out for a proper exchange and has resultantly grasped the opportunity.
CEO and Founder of 100x Group had the following to say.
“South Africa has an incredibly exciting and fast-growing cryptocurrency ecosystem, and we believe VALR is well-placed to capitalize on future growth of bitcoin trading. In VALR we’re backing not only a successful early-stage business, but a management team with the ability to scale operations significantly.”
BitMEX also appears to have the notion that Bitcoin will continue on an upward trend. The market sentiment at the present moment is such. Hash rates are reaching record highs, and Bitcoin’s price traditionally goes up after a halving. Moreover, combining this with the fact that investors are looking for a hedge against monetary inflation, it becomes difficult to argue with the market’s collective opinion.
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