The Routefire Blog

Last night, a trader sold $100 million into an equivalent amount of Bitcoin over the course of several hours. The trade was executed — I'll be generous — "naively" through a simplistic method of buying a constant value of Bitcoin every hour. The unanticipated consequences were huge, and cost the trader plenty — our estimate is $19 million in losses!

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Margin and Shorting Come to Routefire

By Jason Victor
March 26, 2019

Margin is a double-edged sword in financial markets — it enables new types of speculation, of course, but has a nasty habit of popping unhappy surprises on unsuspecting victims, both retail and institutional. That said, its importance cannot be understated since it enables users to hedge crypto exposures, a critical trick in the trader's toolkit that has been woefully absent in crypto for too long. While Routefire's support for margin goes well beyond hedging, in this post we will focus on that use case.

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Why Fake Volume in Crypto Is a Big Nothing

By Jason Victor
March 24, 2019

Quite a stir has been made recently after a report by Bitwise Asset Management and regurgitated by the Wall Street Journal told the world what most of us already knew — there is a lot of fake volume in crypto.

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The recent bear market in cryptocurrencies, combined with ongoing regulatory headwinds, has left well-funded ICOs in need of liquidity. And while de-risking portfolios is likely a smart move for projects not intended to serve as investment vehicles, it is critical that large-volume trading — liquidating bags — be done responsibly so as to not adversely impact the entire ecosystem.

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