BitMEX CEO: Perpetual Swaps Reveal Altcoin Value and Pump-and-Dump Risk
BitMEX CEO Stephan Lutz says analyzing perpetual swap contracts’ performance on different crypto exchanges can be a valuable means of viewing an altcoin’s real value. Talking about BitMEX’s latest report, Lutz explained that the same information can also help traders steer clear of common pump-and-dump schemes in the altcoin market.
How Exchange Listings Affect Perpetual Swap Contracts
In Lutz’s opinion, perpetual swaps—being extremely liquid and leveraged—can exert significant influence on spot prices. Sudden spikes or dips in a swap contract’s value tend to induce corresponding movements in spot prices. This synchronized behavior suggests that studying perpetual swaps is worthwhile even for spot market-focused traders.
BitMEX’s study focused on the influence of listings on swap performance across a range of centralized finance (CeFi) trading platforms. The data, collected from the beginning of 2025 to Mar, showed significant volatility:
- OKX: 70% of new perpetual swap listings hit all-time highs on the first day.
- Bybit and BitMEX: Both of these had 41% of contracts hit all-time highs on the first day it appeared on the list.
- Binance: Experienced a 50/50 ratio where half of the contracts hit its high on day one.
These figures reveal that list behavior differs substantially between platforms, influencing how investors can win—or lose—on launch day.
Picking the Right Exchange Can Determine ROI
Lutz emphasized that investors should be cautious when choosing where to trade perpetual swaps. “Having a well-considered decision as to which exchange to trade the perps can make a real difference in ROI and to avoid the trendy pump and dump technique,” he added.
By acknowledging the trends on different platforms, investors are in a better place to capitalize on momentum or escape manipulated price action.
