Expert: failures in the work of Binance and Coinbase are caused by algorithmic brokers
Technical failures of centralized exchanges are caused by the work of firms engaged in algorithmic trading. This was stated by Ivo Crnkovic-Rubsamen, Director of Strategy at dYdX.
Recent disruptions in the work of the cryptocurrency exchanges Coinbase and Binance may be related to the work of firms engaged in algorithmic trading. This was stated by Ivo Crnkovic-Rubsamen, Director of Strategy at the decentralized exchange (DEX) dYdX.
On February 28, 2024, Coinbase users experienced delays in conducting transactions, and some customers mistakenly displayed a zero balance. On March 5, the platform again reported a technical failure. In addition, on this day, Binance announced a problem with the withdrawal of funds.
In an interview with Cointelegraph, the expert noted that such failures occur every time there is increased interest among retail investors and large price movements.
"Against the background of retail interest, algorithmic brokers are increasing the frequency of placing and canceling orders. It is often a question of increasing the volume by 20 times. This is a common occurrence for such firms," said the director of strategy at dYdX.
According to Crnkovic-Rubsamen, unlike DEX platforms, some centralized exchanges can set individual trading limits for individual market makers based on trust assumptions. This contributes to an increased workload in a bull market, he believes.
Source: https://incrypted.com/ekspert-sboi-v-rabote-binance-i-coinbase-vyzvany-algoritmicheskimi-brokerami/
