Deribit, the Amsterdam-based exchange of cryptocurrency, learns from last week's $ 1.3 million mistake.
This is what Deribit has agreed to pay back to its customers after a flash crash of October 31st caused by an error in the system of the stock exchange for pricing bitcoin futures.
CEO John Jansen said Wednesday in an interview that the company had corrected the flaw and was considering further improvements to avoid a repeat. Deribit, specializing in futures and options on bitcoin and other cryptocurrency, considers customer satisfaction and loyalty as crucial elements of its plan to occupy a leading position in the fast-growing sector, has -he declares.
The company quickly made the decision to reimburse the aggrieved customers because it was "the right thing to do," said Jansen, while acknowledging that the question might have been more complex if the cost had been more Student.
"We really do not want it to happen again," said Jansen. "It was like an expensive alarm clock or maybe cheap."
In last week's crash, Deribit's futures dropped quickly from $ 9,150 to $ 7,720 before rebounding. The exchange quickly posted a blog post on its website that attributed the fall to a "bug in our system," adding excuses and indicating that some $ 1.3 million had been paid to repay the customers.
The futures prices on Deribit are linked to an index that compiles the prices of several stock exchanges, and the calculation went wrong when two of these stock exchanges were simultaneously taken offline.
"It all happened in a minute and a half," Jansen said. "The blame is on us."
Most customer complaints have declined, he said, now that the refunds have been paid and that some traders have even taken advantage of the incident.
"Some users have made good profits because we have not recovered anything," Jansen said. Some opportunistic customers have even tried to take advantage of the incident to recover their legitimate business losses. He stated:
"We had to draw the line at one point. Some users have also claimed their losses all day. "
This is a booming and profitable sector, said Jansen. Therefore, the decision to repay is not really a choice, he said.
According to data provider Skew, Deribit is the sixth largest exchange in the world for bitcoin futures trading, far behind industry leaders, BitMex and Huobi.
According to Jansen, transactions in cryptography markets will eventually consolidate on a small number of exchanges. Competition is fierce even in these early days of the sector.
"You must always treat your customers properly," said Jansen. "There are always alternatives to go to."
Greg Ciplaro, co-founder of Digital Asset Research, a cryptographic market analysis company, said in a separate interview that he was not surprised by Deribit's offer of repayment.
"They understand that it's a competitive market, that the stakes in dollars are high and that $ 1.3 million to make the entire customers are probably minimal in relation to the amount of their income, "said Cipolaro.
Jansen says he is the largest but not the largest shareholder in the private company and has refused to disclose Deribit's trading commission products. But the cost of reimbursement was reasonable, he said:
"It was still the right thing to do. But you must also be able to do it, right?