BitMEX Presents Guilds, a New Idea for Social Trading

<p>The world
of <a href="https://www.financemagnates.com/tag/social-trading/" target="_blank" rel="follow">social trading</a> has been evolving for more than a decade and is dominated by
several major players. BitMEX, a major crypto derivatives <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a>, wants to change
this balance of power and has unveiled a novel approach to social trading named
‘Guilds’. In its beta testing phase, Guilds is open to all BitMEX
users, allowing active engagement and collaboration among traders.</p><p>BitMEX Wants to Redesign Social
Trading with Guilds</p><p>Guilds
provide a social <a href="https://www.financemagnates.com/terms/t/trading-platform/">trading platform</a> for users to form teams with other traders,
enabling them to trade competitively as a collective and share trading
strategies. The goal for each Guild is to outperform others, earning a top
three position on the leaderboard and claiming a share of the weekly prize
pool, known as the ‘Guild Pot’.</p><p>The
creation and identity of each Guild are managed by its leader. Once
established, Guild members can communicate in a private chat room that's fully
integrated into the trading UI. Social trading solutions have been developed
for more than 15 years, with the largest player in the market being the
Israeli-originated, eToro platform. However, the concept presented by BitMEX is
something new, which may be of interest to some traders.</p><p>“Guilds is
not just designed to drive collaboration amongst the BitMEX trading community,
it stands as a testament to our commitment to helping our traders thrive and
recognises the power of social trading,” Stephan Lutz, the CEO and the CFO of
BitMEX, commented. “By being part of a Guild, we hope that our traders can
unlock their full potential by learning from their cohort.”</p><p>Early
Results Seem Encouraging</p><p>The beta
launch of Guilds on 29 June attracted over 230 beta testers. Traders
participating in Guilds earned nearly $330,000 in profit and loss (PnL) in one
week. According to BitMEX, this initial result is promising and stands as a
significant milestone for the crypto exchange.</p><p>“The
initial success of BitMEX's latest offering gives me the confidence in the
direction we are taking with product development and in our ability to empower
and support traders through our comprehensive ecosystem” Lutz added.</p><p>Any
verified BitMEX user can join a Guild, either as a leader or a member. Each
Guild can host up to 49 members, with leaders required to stake at least 10,000
BMEX tokens. Guild leaders have the authority to manage their Guild's
membership and distribute the ‘Guild Pot’ if won.</p><p>More Companies Join ‘Dead’
Industry?</p><p>BitMEX is
not the only financial company trying its luck in social trading. Over the last
two months, <a href="https://www.financemagnates.com/forex/match-trader-technologies-teams-up-with-zulutrade-for-enhanced-social-trading/" target="_blank" rel="follow">Match-Trader Technologies</a> has partnered with ZuluTrade to expand
its existing social trading services. Meanwhile, <a href="https://www.financemagnates.com/forex/exclusive-brokeree-solutions-launches-social-trading-mobile-app/" target="_blank" rel="follow">Brokeree Solution has
introduced</a> a mobile application for social trading.</p><p>Moreover,
<a href="https://www.financemagnates.com/cryptocurrency/twitter-goes-deeper-into-trading-with-cashtags/" target="_blank" rel="follow">eToro has announced a partnership with Twitter</a> to integrate real-time asset
prices with the $Cashtags feature of the social media platform. eToro told Finance
Magnates that Twitter owner Elon Musk was not directly involved in the
transaction.</p><p>However,
according to data gathered by Finance Magnates, the peak of social
trading popularity was in 2017. Currently, social trading volumes <a href="https://www.financemagnates.com/forex/technology/with-only-3-of-total-traded-volume-is-social-trading-dead/" target="_blank" rel="follow">account for
only 1-3% of total volumes</a> (excluding typical social trading companies, such as
eToro or NAGA). Among the largest brokers in terms of monthly volumes, every
third one offers some form of social trading. However, for most, this does not
yield a significant profit.</p>

This article was written by Damian Chmiel at www.financemagnates.com.