Crypto.com Tech Upgrade Paves Way for Derivatives Trading
Hong Kong-based cryptocurrency platform Crypto.com has revamped its digital exchange.
The new upgrades are expected to increase the performance and throughput of the exchange by 10 times, the company announced Thursday. Changes include improvements to speed, scalability and security.
“With the enhanced performance of the exchange and new features in the pipeline, we want to eliminate any reason for users to go elsewhere and function as their trusted ‘one-stop shop’ for their digital asset needs,” Marszalek said in an email.
“What we did here was essentially the equivalent of changing the engine on an airplane mid-flight,” Chan said in an email.
According to Chan, the tenfold increase in performance is thanks to a revamped matching engine and order management system. For high-frequency traders, this would translate into faster response times, stability and access to real-time data.
Chan also took on the improvement of scalability, or processing capabilities, during peak transaction traffic.
“The aim we had when making our adjustments was to build a dynamic system which in theory can scale infinitely,” Chan said.
Crypto exchanges are vulnerable to attacks, with users losing their currency held in exchanges or wallets online. Crypto.com holds 100% of user funds offline in cold storage. According to Marszalek, this is not something the platform is willing to change, despite opening it up to increased transaction volumes.
“This was a golden opportunity for us to reassess all elements of our architecture, and fully integrate DevSecOps into our development lifecycle,” Chan added. “The tech stack, internal communications and other major aspects of all systems have been carefully reviewed, and stress-tested by both internal and external ethical hackers.”
For Marszalek, the new upgrades are part of a larger vision. Crypto.com was founded by Marszalek in 2016 as Monaco, a payment platform with its own MCO token. In 2017, the company’s initial coin offering raised $26.7 million. The next year, Monaco was rebranded as Crypto.com, which currently holds $360 million in cryptocurrency insurance.
“Our three core business pillars consist of payments, trading and lending. As of today, trading is the biggest contributor to our bottom line,” Marszalek wrote in an email.
Crypto.com has 2 million users on their platform, Marszalek said.
Delta Exchange Launches Crypto Interest Rate Swaps
It was only a matter of time before crypto adapted elements of the $341 trillion interest rate swap market to its own. Traders may now be able to hedge the risks they face from interest rate payment fluctuations in perpetual contracts. And it could also help those lending and borrowing in the decentralized finance (DeFi) space.
On June 9, the Singapore-based Delta Exchange launched interest rate swaps (IRS) – a contractual agreement between two parties to exchange interest rate payments over a set period of time.
Usually, an IRS involves the exchange of floating rate and fixed-rate obligations (the parties do not exchange the principal amount). A floating interest rate is the one that moves up and down with the reference rate.
In traditional finance, an interbank interest rate like Libor often serves as a reference rate in a swap. Delta’s interest rate swaps offer floating to fixed swaps using cryptocurrency exchange BitMEX’s bitcoin perpetual (XBT/USD) funding rate as the reference, which helps tether the price of the contract to bitcoin’s spot price.
The funding rate is positive when the perpetuals trade at a premium to the spot price, indicating stronger buying pressure. In that case, longs pay funding to shorts. On the other hand, when perpetuals trade at a discount to the spot market, the funding rate is negative and shorts pay funding to longs. Funding occurs every eight hours at 04:00 UTC, 12:00 UTC and 20:00 UTC, and traders receive funding only if they hold positions at one of these times.
The BitMEX funding rate is usually positive and tends to hover in the 15%-20% range in anualized terms. However, it does rise or fall sharply during bouts of sudden price rally or crash.
A significant chunk of a trader’s profit can evaporate due to fluctuations in the funding rate if a position is held for a long time. That risk could be hedged with the interest rate swaps.
Assuming the funding rate is positive, a trader holding a long position on BitMEX can turn his floating funding rate liability into fixed cost by buying a floating-for-fixed contract for the same notional size as the XBT/USD position. Essentially, the trader would pay the fixed rate and receive the floating rate. Meanwhile, traders with a short position on BitMEX can sell floating-for-fixed contracts.
If the funding rate turns negative, the direction of floating payments will reverse, but the hedge will stay intact, according to the official blog.
Pankaj Balani, CEO and founder of Delta Exchange said, “IRS is also for traders who do not have any exposure to these rates but just want to speculate on rates rising or falling over time.”
A speculator can buy a floating-for-fixed contract if interest rates are expected to rise over a specific period of time. “The trade will be profitable if the realized value of floating rate is higher than the expected value baked into the fixed rate,” according to Delta Exchange.
The exchange collects fixed payments up front at the trade inception, and disburses floating (funding) payments every eight hours (4 a.m. UTC, 12 p.m. UTC and 8 p.m. UTC), in sync with funding exchanges on BitMex.
Indeed, in traditional finance, interest rate derivatives are the largest traded contracts on organized exchanges as well as in the over-the-counter markets globally. For the second half of 2019, the notional amount of interest rate swaps globally was over $342 trillion and valued at nearly $7.5 trillion, according to data compiled by the Bank of International Settlements.
Besides traders and speculators, interest rate swaps may find a market with those involved in decentralized finance (DeFi).
“IRS on Delta Exchange will be super helpful for crypto companies that borrow stablecoins from lending protocols like Compound Finance and MakerDAO by keeping ether as collateral,” said Balani.
Interest rates in the DeFi space are determined by the interaction between demand and supply forces, and are quite volatile.
For instance, yields on the stablecoin tether (USDT) offered by Compound surged earlier this week following the impressive debut of the protocol’s new COMP token. Notably, interest on USDT loans rose above 15% from 3% and were last seen at 8%, according to data source Defirate.com.
Just like those trading in perpetual contracts, a USDT borrower can hedge risk by executing a buy of floating-for-fixed contracts on Delta.
Compound CEO Robert Leshner said that “interest rate swaps will give sophisticated traders an opportunity to more easily access, hedge, and arbitrage floating interest rate markets like Compound – leading to more stable, and less volatile financial products.”
Author: Posted By: Omkar Godbole
Chinese Police Investigate ‘Exit Scam’ by Iranian Crypto Exchange
Bitisis, an Iran-based cryptocurrency exchange platform targeting Chinese investors with investment opportunities, has reportedly pulled an exit scam.
Chinese police are currently investigating the exchange’s disappearance, with the platform appearing to have transferred users’ assets to three wallet addresses after abruptly suspending operations.
However, the addresses in question are held by major cryptocurrency exchanges and have been frozen. The operators of Bitisis are reportedly linked to a number of other similar exchanges.
According to 8btc, Bitisis lured investors with promises of abundant arbitrage opportunities affiliate referral commissions and embarked on an aggressive marketing campaign targeting the users of prominent Chinese social media platforms including Baidu, Zhihu, and Tieba.
The alleged scam also used a sophisticated search engine optimization strategy to drive significant traffic to press releases and other advertising materials.
The report describes Bitisis as a pyramid scheme and a crypto exchange wrapped up in one, allowing users to convert Bitcoin (BTC) into its native token IRRT as a means to access Tether (USDT).
However, users seeking to convert from IRRT would reportedly encounter a myriad of withdrawal and verification requirements.
Users report eventually receiving an email informing them that Bitisis had suspended its business, prompting them to engage law enforcement.
8btc reports that multiple sources have indicated that Bitisis’ operator is actually based in China, with the platform having been hosted using Alibaba’s cloud servers early in its operations.
Bitisis’ operator is reportedly a member of a ring that operates multiple exchanges based in various jurisdictions outside of China.
The group is believed to also operate the Venezuela-based ‘Bit-Ven’ scheme, which has distributed marketing materials that are near-identical to those published by Bitisis.
Author: by admin
Chinese police investigate Iran-based crypto exchange
Reports claim that several similar fraudulent exchanges are being operated from across China
Iran-based crypto exchange, Bitisis, — popular among Chinese investors — has reportedly gone bust. The crypto exchange is being investigated for pulling an exit scam with investment capital it received from Chinese residents through a Ponzi scam. Chinese police are tracing the abrupt disappearance of the exchange as reports of Bitisis being linked to several other similar exchanges have also emerged.
According to a report by 8btc, the scammers had a pre-set modus operandi. Bitisis allowed users to convert Bitcoin into the platform’s native token, IRRT, which could then be changed into Tether (USDT). However, users have revealed that they faced a myriad of withdrawal and verification requirements when converting from IRRT.
The exchange lured individual investors with promises of abundant arbitrage opportunities, engaging in a rigorous marketing campaign on popular Chinese social media platforms like Zhihu, Tieba, Douban and Baidu to foster credibility. The scammers also used search engine optimization techniques to draw traffic towards press releases and other advertising materials.
Eventually, the victims received an email informing them that Bitisis had officially suspended operations. This led them to contact law enforcement agencies who have now begun investigating the exchange.
Initial investigations revealed that the exchange moved its users’ assets to three addresses. The law enforcement authorities have managed to get the related platform to freeze the addresses, classifying the situation as an emergency. The platform where the three addresses were hosted belonged to major cryptocurrency exchanges and thus could be frozen in time, the report revealed.
It was also observed that the quick-freeze of the addresses meant that scammers had poor technical backgrounds. If the scammers had used coin mixers and transferred, cash through smaller exchanges, tracking down the assets would have proven much more difficult.
Speculations regarding the identity of the scammers have also emerged. 8btc has reported that multiple sources believe that the operators are in fact Chinese. The crypto exchange also used Alibaba’s cloud servers in its earlier operations. It was also observed by many that the crypto exchange only promoted its operations in Chinese media and the community.
Further, the report claims that Bitisis’s is a member of a ring that has operated exchanges with similar scam models across China. The group also allegedly operates several fraudulent websites, such as bit-ven.com, a Venezuela based crypto exchange with a marketing model identical to that of Bitisis.
Binance joins Indian crypto-asset committee; will it be enough?
Arguably one of the world’s biggest cryptocurrency exchanges, Binance has taken yet another step towards solidifying its relationship with India’s crypto-users after it announced that it has joined the Internet and Mobile Association of India [IAMAI]. Binance will be part of the IAMAI’s crypto-asset exchange committee, the leading trade body for digital businesses in India.
The IAMAI is notable for representing cryptocurrency start-ups in a Supreme Court case after the Reserve Bank of India banned transactions in cryptocurrency within the country. However, following extensive arguments before the bench, the Supreme Court quashed the Reserve Bank on India’s [RBI] circular in March 2020.
Being a part of this committee will pave the way for open communication about cryptocurrencies between one of the world’s biggest exchanges and local regulators, especially at a time when the government is still on the fence about whether to regulate it or ban it.
Interestingly, a recent report claimed that a note had been moved by India’s Finance ministry for inter-ministerial consultations in response to the SC’s decision to overturn the RBI ban. Despite the content of the note being unclear, the report claimed that this could be the next wave of the crypto-ban in India, one that could be seen after the Inter-Ministerial Committee publishes its draft bill.
The bill in question stipulates stringent punishment for those using crypto and has been looked upon as draconian by many.
With Binance joining hands with the IAMAI, it would be work to implement practices from across the globe, ones followed by leading exchanges, as Binance intends to grow and develop the crypto and blockchain industry in the country.
According to the Vice President of IAMAI, Gaurav Chopra, Binance’s hands-on experience of regulatory compliance in various countries would help them to develop a constructive policy framework for crypto-assets in India. He added,
“…we are excited to work with Binance and other industry players in developing a constructive policy framework for crypto assets in India, helping other exchanges operate in India compliantly and developing a strong framework to foster innovation while managing potential risks.”
The IAMAI, along with other crypto-personalities, have offered to work with regulators and policymakers on the policy framework for crypto to ensure security, without stifling innovation. Binance CEO Changpeng Zhao also voiced his support for the same but failed to mention the steps Binance will be taking in the space.
CZ, in his statement, highlighted the support being offered to Indian projects and entrepreneurs, while also talking about them solving problems through “blockchain technology.” However, he did not expand on the state of crypto-businesses in India. He concluded,
“We hope to further accelerate the progress of blockchain adoption in India and are committed to working with IAMAI on an innovation-led and progressive framework for digital assets and blockchain.”
This is particularly cautious on the part of Binance’s CZ. However, this is fairly understandable since India has largely been pro-blockchain; it’s the crypto part that needs convincing.
Author: Published 23 hours ago
Crypto.com Completes Key Exchange Infrastructure Upgrades
Delivers 10x performance with the new Matching Engine, paving the way for margin and derivative features rollout
HONG KONG, June 18, 2020 /PRNewswire/ — Crypto.com today announced it has rolled out significant infrastructure upgrades to its Exchange, including a revamped Matching Engine, OMS (Order Management System), and unified REST and Websocket API. The revamp will lead to a 10x increase in performance and throughput, paving the way for an aggressive product roadmap for the rest of 2020, which includes the launch of margin and derivatives trading.
The Crypto.com Exchange launched in Beta last November, which has been one of the key drivers of the company’s rapid overall growth in the past six months, as traders increasingly turn towards cryptocurrencies amidst broader market uncertainties. The new infrastructure significantly improves the overall performance, including:
Revamped Matching Engine, Order Management System leading to a 10x increase in performance and throughput
Unified REST and Websocket API providing ease of adoption for both API platforms, with Websockets allowing clients to create a persistent connection to place orders and trades for high-frequency trading
Redesigned architecture, improving scalability, security and latency, which paves the way for a powerful and robust risk engine and high leverage margin and derivatives trading
Addition of high-availability and resilience to every component, increasing stability and eliminating single points of failure
Kris Marszalek, Co-founder and CEO of Crypto.com said: “We launched the Crypto.com Exchange last Fall with a goal of creating a trading platform so secure, liquid and user-friendly that it becomes a natural choice for both institutional and retail customers. We have already seen tremendous traction in the first six months of Beta and will continue rapidly improving our offering to drive continued growth.’
Crypto.com also announced promotional incentives on the Exchange including:
0% trading fee for the first 90 days for new users (new)
Up to 50% trading fee reduction on all trades for existing users (new)
2% bonus deposit interest rate, applicable to all deposits made to the exchange wallet in the first 30 days after the successful sign-up
A Special Syndicate BTC 50% off event celebrating Crypto.com’s fourth anniversary on June 30
The Crypto.com Exchange is powered by the CRO token and features deep liquidity, low fees and best execution prices. It offers traders what’s lacking in the market: competitive pricing, seamless connectivity with the Crypto.com App to access the full suite of crypto offerings from Earn, Credit to Payment and the confidence they are trading with one of the most trusted brands in crypto. The Exchange will see ambitious enhancements throughout the remainder of 2020, including launching margin and derivative trading, lending, localized product and support in multiple languages as well as a revamped rewards program.
Crypto.com’s “Defense in Depth” approach ensures maximum levels of security and privacy across the entire ecosystem, giving users and trades the peace of mind their assets and data is protected. Crypto.com holds $360M in insurance coverage, and recently became the first crypto company to achieve ISO/IEC 27701:2019 certification for privacy.
Crypto.com was founded in 2016 on a simple belief: it’s a basic human right for everyone to control their money, data and identity. With over 2 million users on its platform today, Crypto.com provides a powerful alternative to traditional financial services, turning its vision of “cryptocurrency in every wallet” into reality, one customer at a time. Crypto.com is built on a solid foundation of security, privacy and compliance and is the first cryptocurrency company in the world to have ISO/IEC 27701:2019, CCSS Level 3, ISO27001:2013 and PCI:DSS 3.2.1, Level 1 compliance. Crypto.com is headquartered in Hong Kong with a 350+ strong team. Find out more by visiting https://crypto.com.
Photo – https://media.zenfs.com/en/prnewswire.com/714116fa6ff45e32ae2bc82cf70fbf6d
Photo – https://media.zenfs.com/en/prnewswire.com/f0af7697179e19f266234b67313ea241
Photo – https://media.zenfs.com/en/prnewswire.com/044c88f571c3226cc8bb109aa031fde3
Logo – https://media.zenfs.com/en/prnewswire.com/a81ea137614ac2460375af51dc8c5df3