Crypto Exchange Bitstamp: Our New Matching Engine Will Be Up to 1,250 Times Faster

Siamak Masnavi

On 5 November 2018, cryptoasset exchange Bitstamp announced that it had partnered with Cinnober, a leading provider of trading and clearing technology, in order to replace its in-house developed matching engine with Cinnober’s "TRADExpress Trading System". The customized software "will be hosted and operated by Bitstamp."

As reported by CryptoGlobe, Bitstamp, which was founded in 2011 by Nejc Kodrič and Damijan Merlak, got acquired by European investment firm NXMH. In an article posted on its website, Bitstamp explained why it chose to partner with Cinnober:

"We chose Cinnober because of their proven track-record in worldwide financial marketplaces, their understanding of our vision and ability to work closely with us to customize the technology to meet our needs."

Stockholm-headquartered Cinnober was founded in 1998. Its customers include Australian Securities Exchange, Athens Stock Exchange, Dubai Gold & Commodities Exchange, Johannesburg Stock Exchange, and London Stock Exchange.

David Osojnik, Bitstamp's Chief Technology Officer, says:

“While Bitstamp’s matching engine was already very good by crypto standards, this will put us in the same league as traditional exchanges with decades of experience. Our platform’s order matching speed is expected to become 1250x faster, while throughput will increase by 400x.”

The implementation will be done in several stages, with the first stage taking place in Q1 of 2019; the new matching engine should be fully integrated into Bitstamp by the end of Q2 2019.

According to Cinnober's press release, Peter Lenardos, the CEO of the Cinnober Group, stated:

“We are excited to announce this partnership with Bitstamp, facilitating continued success for their marketplace. Bitstamp is one of the world’s leading bitcoin exchanges and has a position of trust in the digital currency trading community. By upgrading their trading technology to further improve performance and stability as interest from investors and regulators grow, they demonstrate their firm commitment to providing a safe and reliable marketplace.”

As for Bitstamp's CEO (Nejc Kodrič), he said:

"This is a crucial step on our mission to bridge the gap between crypto and traditional finance."

Eric Wall, Cinnober's Cryptocurrency & Blockchain Lead, tweeted:

 

Featured Image Courtesy of Bitstamp

Coinbase Now Offering Four Free Exclusive ‘Trading Signals’ to All Users

Siamak Masnavi

Digital asset exchange Coinbase has announced that all Coinbase users now have access to four free exclusive "trading signals."  

Coinbase explained in a blog post published on Wednesday (July 17) that it wants to help their customers "independently create and manage their own crypto strategy" by making available certain data—some of which is based on the "aggregated and anonymized activity of millions of Coinbase customers"—available, for free, to all users of Coinbase. These "insights" (which Coinbase says are "the first of their kind in crypto") are only available to those who are logged into the Coinbase website. gital asset that is available on Coinbase.com.

The four tradings signals are available for every digital asset that is available on Coinbase.com.

So, what are these trading signals?

Top Holder Activity

This refers to the percentage of Coinbase users "with large balances of an asset (top 10%)" who have either bought or sold that asset in the past 24-hour period. This information is updated every two hours. 

At the time of writing, for Bitcoin (BTC), 69% of the top BTC holders have bought Bitcoin and 31% have sold Bitcoin in the past 24-hour period.  

Typical Hold Time

This is the "median number of days an asset stays in a Coinbase customer’s account or vault before it’s sold or sent to another address or wallet."

In the case of Bitcoin, currently, the typical hold time is 85 days.

Popularity on Coinbase

This is a "a ranking (out of all tradable assets) of how many customers hold a particular cryptocurrency." This information is updated every 24 hours.

You will probably not be surprised to find out that currently Bitcoin is the most popular digital asset on Coinbase.

Price Correlation

This signal tells you how cryptoasset prices move in relation to each other, i.e. a high positive correlation means "those assets’ prices have tended to move in the same direction." So, if you want to hedge your risk exposure to BTC-related price movements, you might want to consider buying cryptoassets that have a high negative correlation with Bitcoin.

In the case of Bitcoin, currently, Coinbase.com (UK) shows the following price correlation information when you are looking at Bitcoin:

Coinbase Price Correlation Info - 18 July 2019.png

Coinbase wisely points out that "price correlations are historical and not predictive of future correlations," and that all market data provided by Coinbase, including these four trading signals, should not be "considered investment advice."

Featured Image Credit: All Images Courtesy of Coinbase.com (UK)