BNC’s Liquid Indices suspend Bitfinex data
Due to concerns about price disparity and a lack of transparency at the Bitfinex exchange, Brave New Coin has decided to remove Bitfinex data from its Bitcoin, Ethereum and XRP Liquid Indices pending further review.
Beginning in late April BNC analysts have observed prices on the Bitfinex exchange diverge significantly from the market as compared to prices on the other constituent exchanges in BNC’s Liquid Indices product portfolio.
As per the protocols of the LX program (which includes the BLX, ELX and recently released XRPLX), the Liquid Indices Governance Panel (LXGP) has analysed the disparity and the concurrent market communications from Bitfinex. It has been decided that the Bitfinex USD trading premium in combination with difficulties withdrawing USD and a lack of transparency from the exchange calls for a suspension of Bitfinex from all LX products.
Exchange data from Bitfinex will therefore be excluded from the LX algorithm and all LX indices – to be re-assessed in due course as a part of the ongoing LXGP monitoring and review agenda.
Prices for the assets on Bitfinex began to deviate from other global exchanges after it was revealed on April the 25th that the exchange is in the midst of an ongoing investigation by the New York Attorney General over “undisclosed, conflicted transactions to cover Bitfinex’s losses by transferring money out of Tether reserve funds.”
Beginning May 10th at 6am UTC, Brave New Coin will begin a 24 hour phase out of Bitfinex constituents.
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