Back

FTX Addresses Growing Latency Talks, Revenue Surges Above $1 Billion

editor avatar

Edited by
Ryan Boltman

21 August 2022 15:00 UTC
Trusted
  • FTX US president Brett Harrison has addressed the latency issuers users are experiencing on its platform.
  • Binance CEO commented on the term now coined as "jitters"
  • FTX reportedly made over $1 billion revenue in 2021.
Promo

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.

Sponsored
Sponsored

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.”

Sponsored
Sponsored

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.

https://twitter.com/claire_FTX/status/1561070356684623872?s=20&t=l8CXxk8_BuvgCDoaBfzzVg

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.

Sponsored
Sponsored

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.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.