An AWS malfunction has affected several Asian exchanges causing massive price instability and other operational issues on the platforms. Bitcoin trade orders got executed at $10 on an Asian exchange while some cryptocurrencies including BAT, EOS and ETH were selling at thousand-fold premiums.
Binance, KuCoin Affected
The problem was first highlighted by Binance CEO, Changpeng Zhao, who tweeted that AWS was facing certain issues that were causing “some 500 error messages on APIs” and “affecting withdrawal processing”.
However, Zhao later confirmed in another tweet that funds were #SAFU, meaning that funds were safe.
KuCoin was also among the exchanges affected. The exchange announced on its official website that a part of its chassis in the machine deployed at AWS had overheated and it had assigned a team of engineers to deploy relevant resources to fix the problem.
“Due to the overheating of part of our chassis in the machine room we deployed in AWS, Tokyo, part of our services might become unavailable. The engineering operation team is currently deploying relevant resources of high availability across regions to deal with any possible emergencies that might happen. Some services might be effected during the deployment.”
Crypto traded at massive discounts and premiums
Crypto influencer Dovey Wan took to Twitter and blamed the problem on the centralization in the crypto ecosystem, specifically targeting “BezosChain”. She wrote –
Dovey also shared screenshots where cryptocurrencies were selling at a hefty discount or a premium. On BKEX, a Chinese crypto exchange, XRP traded at $4229, a 1603030% hike over the prevailing market price, against the USDT.
Bitcoin traded at a 99.89% discount and trade orders for executed at 10 USDC (equivalent to roughly $10) on an Asian exchange. From Dovey’s tweet, it is not clear whether the exchange was BKEX or a different exchange. On the same exchange, ETH traded at 8.61 PAX (equivalent to roughly $8.6), and LTC trade at $20.1 USDT (equivalent to roughly $20.1).
She also commented that “exchanges are REKT”.
Given the kind of loss and inconvenience crypto exchanges must have had to bear owing to this technical malfunction in the servers of one of the biggest tech giants in the world, Wan’s appeal for decentralized computer protocols make a lot of sense.