The increased retail interest, paired with growing workloads from algorithmic trading firms, was the main reason behind the recent exchange outages, according to the dYdX chief strategy officer.
The recent outages at some of the world’s largest centralized cryptocurrency exchanges have mainly been caused by algorithmic trading firms, Ivo Crnkovic-Rubsamen, the chief strategy officer and technical lead for trading at the dydx exchange, told Cointelegraph in an exclusive interview.
“Because there’s so much retail interest and the price action is moving so fast, all of the algorithmic trading firms are vastly increasing the rate of order placements and cancels they want to send to the matching engine to maintain their positions […] It’s common for a trading firm to 20 times the output of orders and cancels at a very busy time.”
Some of the world’s most prominent exchanges suffered technical issues in the past week, including Binance, Coinbase, Kraken and Bybit, just days after Bitcoin breached $60,000 for the first time in over two years on Feb. 28.
