Bitkub, a Thailand based cryptocurrency exchange on Wednesday shut its desktop trading services temporarily to fix the problems leading to multiple outages in the past month owing to high trading volumes, reported Bangkok Post. The Thai Securities and Exchange Commission has directed the exchange to fix the problems with its platform within firms as traders have lost millions during peak trading hours as the exchange services went down three times in the last month itself.
The multiple outages followed by a temporary shutdown have brought down the confidence of investors in the platform many even fearing losing money if the platform fails to rectify the problems. The support system of the exchange recorded a heavy influx of complaints about service interruptions.
The shutdown of the platform is a big concern given it accounts for nearly 97% of the daily trading volume and the active trading accounts on the platform have surged to over 800,000 in the first week of January. However, an anonymous source suggests the actual number might be highly inflated or might have accounted for the pending membership requests.
Crypto Platforms Failing Miserably in Handling this Bull Run
Bitkub is not alone when it comes to outages this bull season as some of the top crypto exchanges including Coinbase and Binance faced similar technical problems owing to high trading volumes as Bitcoin price doubled its previous all-time high of $20,000.
— 😒 (@It_AlwayzDottz) January 7, 2021
The ongoing trend of crypto exchanges malfunctioning during peak trading hours suggest that these centralized exchanges were not prepared for the trading volumes registered this bull season. Coinbase registered its all-time-high spot volume of $9.5 billion despite being down followed by Binance with $8 billion in spot BTC trading volume.
With bitcoin prices predicted to move into the $100,000 price domain and altcoin season just around the corner, it’s quite fighting to imagine whether these exchanges would be able to handle the surge and trade activity.