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BitMEX CEO Stephan Lutz Ethereum Has Outperformed Bitcoin Just 15% of the Time emphasized how observing the impact of exchanges on perpetual swap contracts can help traders avoid pump-and-dump schemes.
As the cryptocurrency market matures, advanced trading tools like perpetual swap contracts are increasingly influencing the value of altcoins, says BitMEX CEO Stephan Lutz.
Perpetual swap contracts are a type of crypto trading contract that allows traders to bet on the price of a coin without actually owning it. This derivative product functions similarly to a futures contract, but it does not expire, meaning traders can hold the position for as long as they want.
Lutz explained in an interview with that it is important to track perpetual swap contracts because newly launched perpetual swaps allow traders to short the underlying altcoin for the first time. Lutz stated that this is where “true price discovery” begins: “Perpetual swaps play a critical role in the price discovery of newly launched altcoins and are often the first derivative product to be launched, making them a strong indicator of market sentiment.”
Lutz added that perpetual swaps allow for both long and short positions, giving traders the opportunity to hedge or speculate. “Tracking these positions can reveal directional bias,” he noted.
This means that tracking perpetual swap movements gives traders a clearer understanding of how the value of an altcoin is determined.
Impact of Exchange Listings on Perpetual Swap Contracts
Lutz pointed out that perpetual swaps often lead to spot price movements. Due to the high liquidity and leverage involved, a surge or drop in perpetual swaps can pull spot prices along with it. This means that observing the intricacies of perpetual swap data can also benefit spot market traders.
Like spot crypto markets, perpetual swap contracts are also influenced by exchange listings. However, centralized finance (CeFi) trading platforms vary in how listings impact perpetual swap contracts.
In a report studying how exchange listings affect perpetual swap contracts, BitMEX outlined how different exchanges vary in terms of their first-day listings of perpetual swaps.
According to BitMEX’s data from the start of 2025 through March 18, 70% of contracts listed on the cryptocurrency exchange OKX reached a new all-time high on their first day.
Meanwhile, Bybit and BitMEX showed similar values at around 41%, while Binance exhibited a perfect split of 50%, meaning that some contracts reached their all-time highs on the first day, while others did not.
“For traders, particularly, carefully selecting which exchange to leverage for trading perps can have a significant impact on ROI and help avoid the commonly seen pump-and-dump schemes,” Lutz concluded.
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