Coinbase Aims to Solve Its Outages By Acquiring Trading Infrastructure Startup, Routefire
U.S based crypto exchange, Coinbase acquires trade execution startup, Routefire. Will this solve the exchange’s failures in times of extreme volatility?
Coinbase, U.S. leading crypto exchange, is up and running in its mergers and acquisition department in 2021, announcing its first acquisition – Routefire, a trading execution engine startup. The Routefire team's statement confirms all services to customers will be discontinued as the firm joins the wider Coinbase Inc. family. The acquisition is set to improve Coinbase trading executions following the number of outages witnessed on the exchange as Bitcoin pushed its price past $40,000 BTC 0.24% Bitcoin / USD BTCUSD $ 21,117.33
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“We remain deeply committed to this ecosystem and are excited to help develop Coinbase’s market-leading suite of institutional products, which provides the true end-to-end solution that we believe best meets our customers' needs,” Routefire statement on Coinbase’s acquisition.
Routefire is a leading provider of execution services and trading technology in cryptocurrencies. The company launched in late 2017 with a mission to provide sophisticated and advanced trading infrastructure to the cryptocurrency markets. The platform allows cryptocurrency exchanges and over-the-counter trading desks “to execute orders quickly and efficiently across venues without suffering the market impact common to large block orders,” the statement reads.
The startup boasts of having one of the most performance effective tools in the space, with $1 million+ orders being routinely filled without a lag or outage.
However, the acquisition couldn’t come soon enough for Coinbase after many failures and trading outages as the price of Bitcoin skyrocketed to all-time highs of $41,000. Developing a better exchange is a paramount goal for the company, which recently submitted its draft regeneration statement to the SEC with plans to launch its IPO later in the year.
Commenting on the latest acquisition by Coinbase, critics called on the exchange to improve its user experience and uptime in times of extreme price volatility across crypto markets. Acquiring Routefire could be the first step for Coinbase,
“As more institutions enter the crypto space, we're committed to providing the most sophisticated trading services in the space,” a tweet from Coinbase reads. “Today, we're excited to welcome the @routefireio team to Coinbase to help us execute on this commitment.”