by Gil Davis
Bitfinex is to adopt the Digital Asset Market Integrity platform Irisium in an attempt to improve their ability to identify and react to manipulate behavior on their exchange.
Bitfinex is, by trading volume alone, the second largest cryptocurrency exchange in the world. With this comes the responsibility of being industry leaders in innovative practices if they wish to maintain this lead and collaborating with a highly praised company like Irisium is a great step in that direction.
Irisium, once known as Ancoa Software LTD, provides high-quality market surveillance and analytical services that have been developed by market experts. The technologies working under the hood are highly sophisticated, but in the proper hands are extremely flexible for the needs of each individual demand. Combining these technologies allows Irisium to give businesses excellent surveillance tools while simultaneously giving them valuable intelligence.
The CTO of Bitfinex, Paulo Ardoino commented on the potential this collaboration will bring to the table:
“Comprehensive market and trade surveillance capabilities are integral to operating an exchange. To meet the complex needs of an evolving digital asset class and to protect our sophisticated participants, Bitfinex requires an agile surveillance system built on the latest technology… Together with our experienced team, the Irisium platform will provide the surveillance needed to protect our participants and our venue from trading abuses.”
A Welcome Move for Crypto Markets
Irisium specializes in fighting market manipulation and help manage it at the same time. This simply means that with the help of Irisium, Bitfinex has the tools their professionals need to cut manipulative behavior quickly.
Alastair Goodwin, CEO of Irisium Ltd, followed Paulo Ardoino’s statement with:
“We are at a tipping point in the development of the digital currency marketplace. As professional traders and sophisticated investors enter the market, exchanges need to deploy modern surveillance tools that can detect abusive trading practices and protect their customers.”
Irisium, a subsidiary of Cinnober Financial Technology, has put themselves in a great spot in the current crypto-climate. As more jump on the bandwagon exchanges will see more and more business, which means more opportunities for manipulative behavior. Irisium is set to be the industry leader in fighting these sort of tactics and may be an invaluable brand in time to come.
The Bitfinex/Price Manipulation Controversy
Bitfinex has long been accused of allowing market manipulation of the bitcoin markets on their exchange, with a lot of evidence provided by a personality known as Bitfinex’ed. ‘Wash trading’ and ‘painting the tape’ are two practices that have been observed on the exchange that are considered illegal in traditional markets.
Bitfinex’ed suggests that the partnership may not have been on part of the exchange, but instead, they have been pressured to do so, as they are under investigation by the CFTC.