BitMEX co-founder Arthur Hayes noticed negative perp funding on several well-known exchanges such as Gate, Binance, and his own BitMEX. He attributed the negative funding rate to a wealthy 'cohort' who have been selling heavily into digital asset markets.

Perp is shorthand for 'perpetually rolling swap contract,' a popular crypto derivative. As opposed to a real swap, perps have no expiration and use a funding mechanism to anchor contracts to underlying spot prices.

Listen to this article to find out the explanations behind negative perp funding.

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