Crypto KOL Phyrex said on X that BitMart and BitMex did not collapse because of a blowup and should not be compared directly with FTX. In his account, the core issue at both platforms was their business operations. He also said BitMart approached people around him in 2023 to discuss a possible acquisition and prepared substantial data at the time, but the talks did not lead anywhere.
Phyrex argued that part of the decline seen at many third-tier exchanges came from pressure tied to Binance Alpha. According to his post, smaller exchanges had long served as a main venue for altcoins, manipulated coins, pyramid-scheme coins, and community coins, but Alpha gave those tokens a better destination, cutting deeply into listing fees and the profits from coordinated market-making. He added that another factor was the movement of copy-trading leaders, who often shift across exchanges and quickly bring users with them when a newer platform offers better profit terms. He said several recently known exchanges that ended up running away broadly followed that pattern.
ChainCatcher reported that crypto KOL Phyrex said in a post on X that "BitMart and BitMex did not go under because of a blowup, and that is very different from the sacrifice of FTX. The main issue with those two was their business."
He added that in 2023, BitMart had approached people around him to discuss an acquisition. A large amount of data was prepared at the time, but the process eventually went nowhere.
Phyrex said part of the downturn among many third-tier exchanges came from the impact of Binance Alpha. In his description, small exchanges had been a major base for altcoins, manipulated coins, pyramid-scheme coins, and community coins. After Alpha appeared, those tokens found a better outlet, which sharply reduced listing-fee income at third-tier exchanges and also cut profits from coordinated market-making.
He pointed to another factor as well: copy-trading leaders. Phyrex said the total number of such figures is not especially large, but the smaller groups under them rotate in waves. These leaders usually move between exchanges, and once a newer venue offers better profits, they quickly shift their followers over. He said several of the better-known exchanges that recently ran away broadly fit that model.
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