Bybit, a leading cryptocurrency derivatives exchange, has recently made a bold move towards improving transparency for traders by making its liquidation data public via API. This decision comes after the exchange’s CEO, Ben Zhou, challenged the accuracy of reported crypto liquidation figures.

Liquidation is a common occurrence in the volatile world of cryptocurrency trading, where traders can borrow funds to increase their buying power. However, if the market moves against them, they risk getting liquidated, which means their positions are automatically closed to prevent further losses. This process can have a significant impact on the market, as large liquidations can cause price fluctuations and even trigger a cascade of liquidations.

In the past, there have been concerns about the accuracy of reported liquidation figures, with some exchanges accused of underreporting to avoid negative publicity. Bybit’s decision to make its liquidation data public via API is a significant step towards addressing these concerns and promoting transparency in the industry.

The API will provide real-time data on liquidations, including the size, price, and time of each liquidation. This information will be available to all traders, allowing them to make more informed decisions and better manage their risk. Bybit’s move has been welcomed by the crypto community, with many praising the exchange for its commitment to transparency.

In addition to improving transparency, the public API will also benefit traders by providing valuable insights into market trends and sentiment. By analyzing the data, traders can gain a better understanding of market dynamics and potentially improve their trading strategies.

Bybit’s decision to make its liquidation data public via API sets a positive example for other exchanges to follow. It demonstrates the exchange’s commitment to promoting transparency and building trust with its users. As the cryptocurrency market continues to grow and evolve, initiatives like this will play a crucial role in fostering a healthy and sustainable trading environment.