Exchange rides wave of bitcoin mania
Computer currency trading firm Cryptopia is riding the wave of bitcoin mania and has become one of the most widely used cryptocurrency exchanges.
Business development manager Adam Lyness reels off impressive numbers: ‘‘Our trading volume is now $280 million day … We’re making a million dollars a day … Yesterday we had to close off new registrations after they hit 100,000.’’
Cryptopia, which is ranked 20th out of 170 trading exchanges around the world, is based in unassuming offices in central Christchurch, although it’s likely to be moving to bigger premises.
There are about 25 people manning the screens during the day, with a full staff of 50-odd to keep on top of different shifts and ancillary work.
Lyness said Cryptopia’s daily internet traffic was exceeding that of Trade Me and the country’s main news outlets. The firm’s biggest challenge was managing rapid expansion.
Most traders were from the United States and Australia, as well as many countries that had less efficient banking systems and where it was often difficult to even open a bank account.
Lyness said the $280m trading volume would equate to that value if it was converted back to traditional currency.
Currently, one bitcoin is trading at about $22,547, which compares with about $1200 just a year ago.
Cryptopia co-founder Adam Clark acknowledged the current surge in value was due to the huge influx in speculators, which was continuing – this week at least. ‘‘People are starting to realise it’s not going away.’’
Cryptopia gleans its income from a trading fee equivalent to 40 cents in each $100 transaction.
Advocates for cryptocurrencies believe that over time they will be used more for ordinary retailing and business transactions as people realise the advantages and low fees.
Lyness said they had potential for complex transactions requiring ratification from third parties. For example, they could be used in peer-to-peer insurance schemes, and for the trading of startup company shares.
In the immediate term Cryptopia is in the market to hire more systems analysts as it gears up to cope with its unexpected growth.