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

Crypto Investors Buy Bitcoins at $0.32 as Amazon Cloud Outages Affect Exchanges

Update 10:32 UTC - It soeems some cryptocurrency traders were also able to buy Ethereum's ether at $0.33 per coin as cryptocurrencies seemingly flash-crashed on BitMax.

The exchange hasn't yet commented on the incident and has only made it clear withdrawals are halted on its platform. Rolling back the trades may be a possibility.

Cryptocurrency investors were able to buy bitcoin for as little as $0.3 worth of USDT after Amazon‘s cloud service, AWS, suffered an outage that affected various crypto exchanges.

According to Founding partner at Primitive Ventures Dovey Wan, an unnamed Asian exchange saw price instability affect in a way that some trades were executed and allowed investors to buy bitcoin, which was trading at around $10,200 at the time, for less than $1 in Tether’s stablecoin.

The image Dovey Wan posted reportedly came from a Telegram group related to BitMax. The order book data, however, may not have come from BitMax itself as the exchange isn’t certain it's from its own platform. Since the outage, however, it has halted withdrawals.

Other cryptocurrency exchanges were notably also affected by AWS’ outage. Binance, one of the world’s leading crypto exchanges in terms of trading volume, revealed the outage affected some of its users throughout the world. As its CEO Changpeng Zhao tweeted:

KuCoin, another popular Exchange, posted a notice on its website revealing that “due to the overheating of part of our chassis in the machine room we deployed in AWS, Tokyo, part of our services might become unavailable.” It added its engineers were looking o deploy resources to deal with the problem.

On its status page, AWS reports its facilities in Tokyo have been facing problems, but the company has claimed it found the root cause of the problem and working to recover from the problem.

AWS' status pageSource: AWS

Amazon Web Services notably controls a large part of the cloud market, and runs the backend of various popular websites – including Netflix, Pinterest, Spotify, and Slack. It faced other services outages in the last few months and when it did, a large part of internet-based services relying on it went down.