WazirX, the largest crypto exchange in India in terms of trading volumes, was powerless in the face of a powerful surge in demand for Dogecoin.
From May 3 to May 5, the global trading volumes of Dogecoin (DOGE) coin tripled and exceeded $ 42 billion.As Nishal Shetty, the founder and CEO of the WazirX cryptocurrency exchange, explains, this caused the platform to malfunction and ultimately crashed it. The system simply interpreted the surge in trade volumes as a cyberattack.
“On May 4th, one of our systems responsible for tracking traffic misidentified traffic growth, identifying it as a threat, and began blocking applications. As a result, this error led to intermittent failures when users tried to connect to the application, ”he explained.
Thorns and stars WazirX
As an excuse, Shetty recalled that Dogecoin’s price spikes have caused disruptions even to veteran companies like Robinhood, which have been in the industry for nearly a decade. Indeed, as recently as April 16, this platform was also forced to go offline due to “unprecedented demand” for a number of assets, including DOGE.
Meanwhile, Shetty stressed, his company is only three years old, although at the same time no other cryptocurrency exchange in India can match it in terms of traffic.
Since January, the company has grown by over 300%. Shetty says WazirX is updating all-time highs daily for metrics such as trading volumes, active users and traffic.
Meanwhile, with such active growth, the exchange begins to experience difficulties in trying to keep up with the growing demand. Dogecoin was not the only source of problems for her.
In the user chats of Telegram and Reddit, there have been complaints before about security problems with authorization via one-time password (OTP), as well as about the poor quality of technical support and work with clients.
So, on April 4, the exchange went offline for more than a day after the trading volumes on WazirX exceeded $ 270 million. In early May, users again began to report a failure in the operation of services and frozen deposits. Then Shetty explained this by problems with the exchange’s payment processing partner.
It should be noted that the current regulatory uncertainty in India is indeed negatively affecting the willingness of payment system operators and banks to work with cryptocurrency exchanges. Accordingly, this is a potentially weak point of the Indian crypto industry and can negatively affect the processes of withdrawing funds from crypto wallets and making deposits in crypto currency.
Dogecoin is growing
Meanwhile, the Dogecoin saga continues. Over the past year, DOGE has gained an impressive 24,610%, according to CoinGecko. Meanwhile, back in January, the coin rate was kept close to zero. In February, the price exceeded $ 0.05, and in April it rallied, having risen in price eight times to $ 0.40 and only then retreated.
As has been noted more than once, the dynamics of Dogecoin is primarily due to speculative factors. So, the coin-meme traditionally reacts violently to any signals given on the Internet by such influencers as Elon Musk and Mark Cuban.
At the moment, the all-time high for Dogecoin was recorded on May 6 at $ 0.65, after which the price retraced slightly.
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