Kraken Exchange Test Bug Allowed Some Traders to Make an Easy 20% Profit

  • Cryptocurrency exchange Kraken disclosed a product testing bug that affected how orders were executed.
  • Certain clients were able to buy BTC at $8000 while others sold at $120000.

Cryptocurrency exchange Kraken has updated users on a new bug that allowed certain clients to buy BTC at $8000 or sell at $12000.

Kraken Exchange Bug 

According to the notice published to Kraken’s official Twitter account, the exchange was testing an unreleased advanced order type when it encountered a bug.

The glitch led to a system error where orders were priced against the wrong side of the book. Certain clients were able to purchase bitcoin at $8,000 per coin while others were able to sell at $12,000 against the tester without an intervene in liquidity being cleared (despite the market price of BTC hovering around $10,300).

Kraken explained that because of the bug, orders were executed on either side of the $8K - $12K spread, without any liquidity in between being exhausted. However, stop orders were apparently triggered and correctly filled.

Community members were quick to criticize the exchange for allowing such a significant bug to occur on a test that was being run in a live market. 

Jesse Powell, co-founder and CEO of Kraken, defended the exchange’s actions by explaining that products have to be live-tested eventually, even if there is a chance of error. 

 

Featured Image Credit: Photo via Pixabay.com

Ripple CEO: 'You Don’t Want to Use BTC at Starbucks'

On Thursday (January 23), Brad Garlinghouse, the CEO of Ripple, told the Wallet Street Journal (WSJ) that Bitcoin is not a good means of payment because BTC transactions take too long.

The Ripple CEO's comments were made during his talk with Phillipa Leighton-Jones (Editorial Director for Innovation) at a Ripple-sponsored event (organized by the WSJ) called "Ripple Panel: Changing the Finance Industry From Within" held alongside this year's World Economic Forum Meeting in Davos, Switzerland.

Although we don't yet have a full transcript of this interview, we do know about two of the things he talked about thanks to tweets by Asheesh Birla, SVP of Product at Ripple, who was at this event.

First, it seems that although the Ripple CEO likes Bitcoin as a store of value, he does not see (at least, as of now) as a viable means of payment. The example he gave was paying for a cup of coffee at Starbucks. He believes that BTC transactions take so long to confirm that by the time you have finished paying for your coffee, "it'll be cold." 

Second, within the next 12 months, he sees several companies in the crypto space holding initial public offerings (IPOs) and he wants Ripple to be "on the leading side" since this is "a natural evolution" for Ripple, which raised $200 million via a Series C funding round (which valued the company at $10 billion) last month. 

On Wednesday (January 22), Ripple published the "Q4 2019 XRP Markets Report", which is a quarterly report that allows Ripple to "voluntarily provide transparency and regular updates on the company’s views on the state of the XRP market, including quarterly programmatic and institutional sales updates, relevant XRP-related announcements such as Xpring and RippleNet partnerships and commentary on previous quarter market developments." 

In Q4 2019, Ripple's total XRP sales were down just over 80% compared to the preceding quarter ($13.08 million vs. $66.24 million). Ripple "continued the pause of programmatic sales" (to crypto exchanges), and focused exclusively on over-the-counter (OTC) sales to "a few strategic partners, who are building XRP utility and liquidity in strategic regions including EMEA and Asia."

Featured Image Credit: Photo via Pixabay.com