BitMEX Token Crashes 90% After Exchange Announces Shutdown — Here's What That Means for Traders

WHY IT MATTERS

Think of a crypto exchange like a bank — it holds your money and lets you trade. If that bank announces it's closing, everyone rushes to get their money out, and anything tied to that bank (like its own stock or token) loses value fast. BitMEX had its own token, and when the exchange said it was shutting down, that token lost 90% of its value almost instantly. This is a reminder that keeping your crypto on an exchange — especially a struggling one — carries real risk. It's similar to what happened with FTX in 2022. The lesson: exchange tokens carry extra risk because their value depends entirely on the health of the company behind them, and 'not your keys, not your coins' remains one of crypto's most important principles.