The American exchange Coinbase has just acquired Routefire, a startup that has developed solutions to optimize transaction processing. Often inaccessible during significant market volumes, will Coinbase finally be able to provide a quality service to its users?
Coinbase has just acquired Routefire for an undisclosed sum. Specializing in solutions that optimize transaction processing, the American startup will help Coinbase strengthen its infrastructure.
Founded in 2017, Routefire claims to have cutting-edge technology that enables institutional clients to execute significant orders quickly and cost-effectively.
“We are very excited to continue our mission to bring an advanced trading infrastructure to the rapidly growing cryptocurrencies markets by joining Coinbase,” Routefire wrote on its blog.
In May 2020, Coinbase acquired Tagomi, a company specializing in cryptocurrency trading solutions for institutional clients.
For between $70 million and $100 million, Coinbase acquired a crypto-broker to strengthen its product line for investors. In particular, Tagomi is behind MicroStrategy’s massive purchases of bitcoins.
As always when exchange volumes increase, the Coinbase servers are unable to keep pace. This causes significant slowdowns or even a complete halt to trading on the platform for long minutes.
Recently, when Bitcoin (BTC) climbed to $40,000, Coinbase suffered significant connectivity problems. Both on its website and its application, all of Coinbase’s trading services were interrupted.
Many angry users have been systematically reporting these problems to Coinbase for years, but the situation has not improved. In its tweet announcing its acquisition of Routefire, Coinbase set fire to the company, stating that it is committed to providing the best possible service:
“As more and more institutions enter the cryptocurrency space, we are committed to providing the most sophisticated commercial services in this sector,” said Coinbase.
These comments obviously provoked the anger of users, who responded to Coinbase with dozens of screenshots of the platform’s shutdowns:
With Routefire at its side, could Coinbase finally reinforce the stability of its infrastructure? Theoretically, Routefire should provide Coinbase with new solutions to improve its trading services. However, it remains difficult to imagine that Coinbase will fill its gaps quickly.
The platform has been prone to such problems for several years. Let’s hope that Routefire will help Coinbase finally provide quality service to its users.