The cryptocurrency markets were on a huge upswing last week which had resulted in a massive influx of investors orders at the exchanges making it difficult for them to meet the demand. At one point in time, the demand had reached to those heights where the exchanges were really finding it difficult to make ends meet and were left with no other option but a temporary closure of the portals.
Over the last two months, a huge number of crypto enthusiasts and investors are seen participating in the crypto markets. One of the largest exchanges ‘Coinbase’ has registered over 100,000 plus users on many days, while Binance has reported adding 250,000 users and Kraken around 50,000 plus users a day.
This huge gathering of investors on the exchanges is causing the existing infrastructure to choke up a bit which are thus facing some usability problems off lately. Moreover, it is not possible to attain an overnight overhaul of the infrastructure.
Following a huge rush just two days back, Binance has to suspend the registration of new clients to its platform. The exchange informed regarding this action in a statement saying, “Due to the overwhelming surge in popularity, Binance will have to temporarily disable new user registrations to allow for an infrastructure upgrade.”
However, just a day back, Binance on its website has stated that it has resumed limited user registrations for the time being.
Other trading exchanges too have echoed to the tunes of Binance. Bittrex has put a halt on new user registration since more than 20 days back sighting huge rush of investors and saying that it is currently working on improving the existing infrastructure.
Bitfinex too is saying the same thing. A part of the message on its website reads: “Thank you for your interest in opening a Bitfinex account. However, due to extraordinary demand, new account creation has been temporarily paused. Bitfinex focuses on serving professional traders. The reason we have decided to temporarily stop accepting new accounts is that we cannot undermine the quality of our services for our existing traders by flooding the system with new, small accounts.”
As cryptocurrencies are penetrating more in the financial markets, more number of investors are participating and wanting to be a part of this crypto mania. One thing is pretty sure that if the demand continues to exist and grow in the future, the exchanges really need to upgrade its existing infrastructure and make it scalable to meet the future demand.