- New liquidity solution unveiled to reduce the discrepancies and inefficiencies in the crypto trading market.
- Former trading gurus at NASDAQ, Visa and Morgan Stanley, are developing a similar product to the ‘best bid and offer’ in traditional markets.
On Wednesday this week, XRP perpetual contracts on BitMEX experienced a flash crash causing an outrage from users, some complaining that their whole account was wiped out. For a relatively big exchange like BitMEX flash crashes should be rare but happens all the time due to liquidity issues as the crypto market continues to mature.
Well, Apifiny, a trading tech development firm, announced a possible solution to the increasing market inefficiencies in the market leading with a liquidity solution, ExOne. According to the official website, the back-end tool introduces traditional market solutions in non-traditional markets such as digital assets trading offering a wide range of advantages.
According to the former vice chair of NASDAQ and Co-Chairman at Apifiny, the fragmented market in the crypto industry and inefficiencies are the main issues ExOne will be trying to solve in the coming days. He said,
“These marketplaces are highly fragmented and remarkably inefficient. If an investor goes to one marketplace the bid that he sees in that one marketplace may be wildly different than it is in another venue.”
The team consists of a number of former professional traders including Ashu Swami, former VP of Program trading at Morgan Stanley; Head of Product Connie Wong, former Design Lead at Kraken, and CEO of Retail Product Ben Rab, formerly Visa’s head of Global Network Product Support.
A “Best Bid and Offer” solution
Traders in traditional markets are used to a stable quote rate as the data is consolidated before it’s broadcasted on trading platforms. However in the crypto world, the markets are fragmented hence the need for a similar best bid and offer as traditional markets to secure the most optimal bid for retail clients.
The product is still in development with official launch dates set to be released soon. Co-Chairman David Wield, a former vice chair of NASDAQ said,
“This is what we’re looking to do in the digital asset space, broadly defined and globally.”