rewrite this title BitMEX Celebrates 11th Anniversary, Marking Its Legacy In Crypto Derivatives

by
Alisa Davidson

Published: November 26, 2025 at 4:50 am Updated: November 26, 2025 at 4:51 am

by Ana

Edited and fact-checked:
November 26, 2025 at 4:50 am

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Cryptocurrency exchange and derivatives trading platform BitMEX, announced the celebration of its 11th anniversary. To commemorate this milestone, the BitMEX team has shared some of the most important lessons it has gathered over the past eleven years. The insights offer valuable guidance for both traders and cryptocurrency businesses.

According to BitMEX, since most traders entered the cryptocurrency space in 2017 or later, many are unfamiliar with the early rise of BitMEX and the era before futures exchanges existed. While not the very first to offer such products, BitMEX played a pivotal role in popularizing Bitcoin futures, providing both retail and professional traders with access to leveraged trading. This development also attracted Wall Street participants, giving them an opportunity to apply technical analysis skills within the cryptocurrency market.

The anniversary letter begins by celebrating Bitcoin’s remarkable growth over the last eleven years, establishing itself as one of the top-performing assets of the decade. However, the focus is not solely on nostalgia. The letter primarily emphasizes the importance of the innovations introduced within the industry, highlighting the developments that BitMEX and the broader cryptocurrency ecosystem have contributed to over the years.

“Before we launched the XBTUSD perpetual,” it boasts with some justification, “crypto derivatives were a joke,” said the BitMEX founder in a written statement. “You had clunky, expiring quarterly futures on illiquid exchanges. You couldn’t trade; you could only punt in a direction and then pray that…the spread between the future and the spot price didn’t liquidate you first,” he added.

BitMEX played a pivotal role in popularizing perpetual swaps in the cryptocurrency market, which are now widely accepted and used. The platform has maintained a leading position in this area, largely due to the new funding rate mechanism, which requires longs to pay shorts or vice versa depending on market direction. Understanding funding rates can offer strategic advantages, as traders taking positions opposite the majority—going short when the market is predominantly long, for example—can have their fees offset.

BitMEX Marks 11th Anniversary With Legends Showdown, Offering 5 BTC Prize Pool To Top Traders

The exchange uses several insights from its 11th anniversary to highlight the importance of transparency, both on-chain and on centralized exchanges. The platform stresses that transparency is crucial for exchange security, helping to avoid operational mistakes and asset commingling that contributed to the collapse of exchanges such as Mt. Gox and FTX.

In its early years, BitMEX was known not only for offering high leverage but also for the deliberate slowness of withdrawals. This delay, which could take up to 24 hours due to funds being stored in multi-signature cold wallets, was an intentional security measure rather than a flaw. By avoiding warm wallets, the platform eliminated a common target for hackers. BitMEX explains, “It was slow. It was expensive. It made us miss the ‘instant deposit/withdrawal’ marketing hype. And that is the exact reason we’ve never lost a single Satoshi to a hack.”

BitMEX argues that this commitment to transparency remains essential today, extending beyond exchange operations to broader areas such as preventing market manipulation and ensuring fair pricing. In decentralized finance (DeFi), the platform advises caution with high-yield stablecoins, recommending that users investigate the source and sustainability of yields to avoid collapses similar to Terra/LUNA.

While the 11-year retrospective includes sobering lessons on the risks of high leverage and high yields, it concludes on a celebratory note. 

In order to mark the milestone, BitMEX is launching the BitMEX Legends Showdown with a 5 BTC prize pool. This opportunity is particularly appealing to experienced traders familiar with basis spreads, expiry dates, and those holding strong PnL for the year. The platform celebrates 11 years of growth and innovation, looking forward to continuing the legacy of perpetual swaps.

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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