BitMEX is reacting to greater scrutiny of crypto’s high energy consumption levels by pledging to go carbon neutral.
Crypto derivatives trading platform BitMEX, which has had its fair share of terrible press over the past year, is attempting to bring about cleaning up the wider business’s picture by taking action to address growing climate concerns over the carbon footprint of Proof-of-Work currencies like Bitcoin (BTC).
In an announcement printed on May 21, the market said that although there are apparently”wildly divergent views and accuracy of advice” regarding the climate risks posed by a few cryptocurrencies, BitMEX feels it has a”responsibility to take positive actions .”
This action will take the form of an attempt to offset its carbon footprint by devoting $0.0026 for each $1 of blockchain fees its customers pay out. What organization will be the recipient of these donations is yet to be confirmed. BitMEX says it is now exploring whom to associate with and will release additional details in due course. The market concedes:
“Carbon offsetting isn’t the only response to concerns relating to the ecological footprint of crypto, but it is certainly a good start […] the industry has to come together and tackle challenges that risk sidetracking our positive intentions.”
BitMEX has obtained its $0.0026 figure from rough calculations published by Sam Bankman-Fried, the CEO of both crypto derivatives exchange FTX and Alameda Research. Bankman-Fried’s proposal, declaring”large error bars,” is that this amount ought to be sufficient for crypto companies to offset their carbon emissions.
A stronger response from the sector may be needed, as BitMEX seems to recognize. This month, the European Central Bank’s current Financial Stability Review emphasized that the”exorbitant carbon footprint” of crypto-assets as grounds for concern. Meanwhile, the organizations ranging from Greenpeace to Tesla have started quitting to accept BTC payments due to the energy-intensity of mining and transactions.