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

CZ Addresses Concerns About Binance Launchpad’s Controversial New Sale Format

On Sunday (March 24), Changpeng Zhao ("CZ"), the co-founder and CEO of cryptocurrency exchange Binance, explained the motivation behind Binance Launchpad's new lottery-style token sale format, and addressed some of the most common questions/concerns raised by the crypto community.

As we reported earlier, around 08:44 UTC on March 24, Binance sent out the following tweet to announce a new lottery format for the next project on Binance Launchpad.

Unfortunately, not everyone loved the change from the old "first-come-first-served system" to the new "lottery format", with the main complaint being that this new format discriminated against "poorer" investors since the "number of tickets you can claim depends on the amount of BNB you hold over a 20-day period in a Binance account leading up to the day of the lottery, up to a maximum of 5 tickets per eligible account" and your 20-day minimum BNB balance must be at least 100 BNB (worth approximately $1700 at current BNB prices) in order to be able to claim any lottery tickets.

Here were some of the comments by the critics of this new model:

In order to address this criticism, the Binance CEO took to Twitter around 90 minutes after the Binance Twitter account made the announcement to explain that he was willing to listen to all of the feedback and consider making adjustments to the proposed new sale format for Binance Launchpad:

CZ decided to focus his attention on the following two complaints/concerns:

  • No way for people holding less than 100 BNB to participate, thereby limiting the platform to those with relatively large BNB balances (the "whales").
  • Some "whales" could get around the "maximum of 5 lottery tickets" rule by using multiple Binance accounts.

Here were CZ's thoughts on these two issues:

And finally, in response to those who had suggested that the 20-day minimum BNB balance should be 50 instead of 100, this is what CZ had to say: