With today's update we changed the calculation for our BTC/USD price index. Instead of Bitstamp, we now use Gemini Trust Company, LLC. (https://gemini.com/) as our second exchange. The new price is now calculated by the non-volume weighted average of:
- Coinbase UK Ltd. (GDAX, BTC/USD)
- Gemini Trust Company, LLC. (BTC/USD)
There are multiple reasons for this change: Apart from several technical incidents, Bitstamp's price had a big offset to other exchanges for unknown reasons in the past week. We received many complaints about the resulting price movements since they had a negative impact on the trading experience. With Gemini, we hope to have found a stable and trusted replacement.
Another change that we introduced some days ago is a "floating" spread which is automatically recalculated hourly and is based on the market conditions. We wrote about this topic and the underlying problems in a previous blog post. Unfortunately, this situation has not improved since then due to the extreme (exponential) growth of our user-base and our new Copy Trader system. Managing the risk for our BTC/USD market has never been harder for us. We want to apologize in advance for the occasional high spreads, but in order to keep this contract profitable for us, this system is required.
Less trading breaks
We are happy to announce that the (annoying) daily trading break between 5:00 and 5:15 p.m. (New York time) for our BTC/USD market is gone with one exception: A weekly trading break on Friday at the same time will remain. This time-frame is necessary to deploy software updates and make other important changes on our servers.
Keep in mind that our BTC/USD market is still in experimental mode. We reserve the right to make changes like this at any time in the future!