Coinbase, a famous crypto exchange firm in the U.S., has acquired Routefire, a trading engine startup. According to the acquisition terms, the startup will no longer operate on its platform and develop digital asset execution services under Coinbase. Routefire, founded in 2017, alleges to employ the best technology in the market to help institutional clients perform large transactions at high speed and with low prices.
The startup’s acquisition is Coinbase’s first purchase of 2021. It corresponds with the escalation in the price of Bitcoin over $40,000, which has rallied interest from institutional investors. This acquisition was essential for the firm. It was keen on launching an IPO (Initial Public Offering) filing with the SEC (Securities and Exchange Commission) later this year.
Coinbase’s acquisition attracts various reactions from users.
Coinbase stated that the firm’s acquisition was proof of its commitment to rendering better services for its users in a tweet thread. Furthermore, they understand that Routefire will assist in accomplishing its goal. The report of the acquisition has also brought mixed reactions from the client base of the exchange. Some of them have requested the exchange firm to enhance its user experience and uptime with the crypto industry undergoing price volatility.
Nevertheless, with Bitcoin’s surge to $40,000, Coinbase experienced particular connectivity issues. As of January 6th, many users announced on Twitter that the crypto exchange’s website was not available. The firm later approved that its mobile app was down as well. Furthermore, following the newest announcement, a Coinbase user lamented that the exchange’s website had been down for various days. Later, Coinbase stated that it had been capable of restoring the core functionalities of the website.
Earlier, the exchange giant had a related connectivity issue when the price of Bitcoin plunged massively in one day. Therefore, users had been criticized massively for their failure to trade Bitcoin. However, the firm solved the issue and recognized the problem as increased latencies affecting order entry and settlement.
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