Increased Bitcoin Demand Puts a Strain on Global Exchanges

Increased Bitcoin Demand Puts a Strain on Global Exchanges

THELOGICALINDIAN - Just afresh we appear on the Poloniex barter aggravating to handle a cogent access in cryptocurrency trading as able-bodied as a ample arrival of new barter However Poloniex is not the alone trading belvedere ambidextrous with added trading activity as about every barter is experiencing added demand

Also read: Crypto Tales Pt. 1: Odd Stories That Surface in Bitcoin-Land

‘Significant Pressure on the Customer Service Team’

May 25th was a animated day in Bitcoin-land as barter volumes hit an best aerial of over $2.4 billion during the day. Many traders are authoritative moves to accrue profits by day trading or utilizing intra-range strategies. Although absolutely a few exchanges accept been accepting a difficult time ambidextrous with the demand, Denial-of-Service (DDoS) attacks, added chump support, and alike befitting their website online.

This includes acclaimed exchanges like Coinbase, Kraken, and Bitstamp as the companies accept issued statements, and beyond forums, barter are complaining. Last anniversary Bitstamp explained to its audience that added appeal has put a lot of burden on the company.

“As agenda currencies abide to accretion in popularity, the access in the cardinal of new traders on exchanges like ours can apply cogent burden on the chump account team,” details Bitstamp. “Our assignment to accomplish our acquiescence obligations additionally agency that there are banned as to how abundant of the onboarding action can be automated, which imposes added demands on our staff.”

Dramatic Increases in Traffic and Trading Volume

The cryptocurrency allowance account and barter Coinbase is additionally ambidextrous with added trades and new customers. The barter has been seeing about 100,000 new registrants per anniversary and currently casework 7.2 actor customers.

“The bazaar cap of agenda currencies has added ~50 percent to $91 billion in the accomplished week. As a result, Coinbase has apparent a affecting access in cartage and trading volume,” the close told the advertisement Techcrunch in a statement.   

‘100% Uptime is Unrealistic’

Additionally, abounding of these trading platforms accept been adversity through DDoS attacks which accept been a accepted accident for exchanges this month. On May 7 the San Francisco-based Kraken barter experienced a astringent DDoS advance ambidextrous with Ethereum trades, which “cascaded allowance liquidations on the ETH/USD adjustment book.”

Throughout these moments of frustration, traders accept bitcoin exchanges should agreement 100 percent uptime. Kraken’s architect and CEO Jesse Powell explains that blazon of appeal is unrealistic.

“Unfortunately, this is not astute at our amount point. Even giants like Amazon and Google are not absolutely allowed to DDoS,” Powell declared during the company’s May 7 DDoS attack.

Exchanges See High Prices & Irritable Traders

Trading platforms that are backward and adversity from lots of chump abutment appeal are absolutely acid bitcoin traders. Some are alike accusatory about charts not working accurately which is not an ideal bearings for traders. However, the added appeal has pushed bitcoin’s amount way up the amount ladder and not too abounding bodies are accusatory about that. Traders achievement that with all the new money abounding into these exchanges they will appoint added advisers and bind up their company’s DDoS acknowledgment defenses.

What do you anticipate about all-around exchanges accepting issues befitting up with demand? Let us apperceive in the comments below.

Images via Pixabay, Bitstamp, and Coinbase.   

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