FTX US President Brett Harrison took to Twitter to address the latency issues of the exchange, saying it is not as serious as many have made it.
According to Harrison, there are 4 different components of order latency, and it is important to distinguish them.
1/ Lots of discussion about FTX UI latencies taking place today. Further info on latencies in crypto exchange client-server applications:
— Brett Harrison (@Brett_FTX) August 20, 2022
The first component is the time between “clicking “send” to the REST API call reaching the exchange’s API servers.” He claimed this is mostly about the physical distance between the network router and exchange data center.
The second component is the time the exchange spends to fully process an order. Harrison said this had improved significantly on FTX despite the company’s significant growth.
He continued that the third component is the time it takes for the order to be acknowledged and new market data to reach the application. This may show up in the next poll if it is a REST API.
“Often the pull/polling aspect can be misinterpreted as true latency, when in fact the actual event has already occurred and the UI is just waiting for the next timed update to come in.”
The last component is the time it takes the UI to update incoming data. While this is usually instant on FTX, Harrison said the UI might be overwhelmed with updates.
Harrison explained that only Components 1 and 2 are real latencies while Components 3 and 4, which are what users may experience on FTX, are perceived latencies. But he promised that the exchange would work to fix those soon.
Meanwhile, Claire Watanabe also urged the exchange users who have experienced lag on the application to send her videos of their experience.
An open call for videos that show your experience of lag on #FTX — we really want to make the experience better, and videos are super valuable for debugging.
DM me your videos. I'll personally send swag to anyone who does! https://t.co/h67aJqY2rs
— Claire Watanabe (@claire_FTX) August 20, 2022
CZ raises trading jitters talk
Talks about latency on FTX came up after Binance CEO Chanpeng Zhao raised concerns about traders experiencing jitters on some crypto exchanges.
Just learned a new word, jitters. On 1 particular exchange, sometimes your orders will be stuck for a bit, and a few other orders will get in front of you. Apparently, this happens often enough on this exchange that the traders coined a term for it, jitters. (Front running) 🚫
— CZ 🔶 Binance (@cz_binance) August 19, 2022
Jitters are when a trade order gets stuck and moves down the list while newer trades go through. Many believe this is a dig at FTX.
FTX revenue spikes above $1 Billion
CNBC reported that leaked financial records show that FTX revenue grew from $90 million in 2020 to $1 billion in 2021.
The FTX brand also expanded with the company buying several startups. In this year alone, the Sam Bankman-Fried-led firm has offered bailouts to several embattled crypto firms.
However, the revenue has likely taken a dive in 2022 with the bear market. The company recorded revenue in the first quarter was $270 million.