Sky high demand is overrunning cryptocurrency exchanges. This record demand has dramatically slowed, and sometimes completely restricted, cryptocurrency exchange's ability to provide services to users. Several exchanges have had to temporarily close their doors as they search for solutions. Others, like Bitstamp recently announced that they are implementing major hiring campaigns to address the surge in crypto trading volumes.
In December, when cryptocurrency prices were peaking frequently, exchanges were registering over a million users a day. Though prices have since fallen, users are still registering accounts with exchanges in record numbers. However, exchanges aren't able to adequately meet the needs of both new and existing clients.
In a Thursday blog post, Bitstamp CEO, Nejc Kodric, had this to say:
"Our data confirms what was beyond even our most optimistic forecasts for customer growth in the past year. Under normal circumstances this would be cause for celebration, but we are certainly far from feeling in celebratory mood. Our customers have experienced often lengthy delays, causing satisfaction levels to plummet, and that does not sit right with any of us."
Executives welcome the boon in business, but note that it presents new challenges. Kodric commented, "The arrival of so many people who are completely new to the industry means we are also now fielding very different questions... stretching our capacities even further."
Last week, CBC News reported that the Einstein Exchange was forced to greatly increase the size of their staff, which now stands at over 50 people. Co-founder Michael Gokturk, explained that this was due to the large influx of customers. Like the team at Bitstamp, Einstein Exchange is turning to the labor markets to be able to handle the sudden rise in business.
Popular cryptocurrency exchanges, like Bittrex, Bitfinex, Binance, and Cryptopia, have all reported shut downs in the past month. Although normal service has resumed and trading volumes are at all time highs, exchanges are still working hard to prevent future shutdowns. Bittrex published a snapshot that showed how it serves three million active users a day, no doubt encouraging its operations team to shore up the exchange's processes.
The cryptocurrency boom is in its infant stages, so exchanges must be proactive in meeting demand. If last December was an indication of the future, exchanges should expect continued surges in new users.
Bitstamp beefing up its operations
In December, when cryptocurrency prices were peaking frequently, exchanges were registering over a million users a day. Though prices have since fallen, users are still registering accounts with exchanges in record numbers. However, exchanges aren't able to adequately meet the needs of both new and existing clients.
In a Thursday blog post, Bitstamp CEO, Nejc Kodric, had this to say:
"Our data confirms what was beyond even our most optimistic forecasts for customer growth in the past year. Under normal circumstances this would be cause for celebration, but we are certainly far from feeling in celebratory mood. Our customers have experienced often lengthy delays, causing satisfaction levels to plummet, and that does not sit right with any of us."
Executives welcome the boon in business, but note that it presents new challenges. Kodric commented, "The arrival of so many people who are completely new to the industry means we are also now fielding very different questions... stretching our capacities even further."
Bistamp and Kodric are not alone
Last week, CBC News reported that the Einstein Exchange was forced to greatly increase the size of their staff, which now stands at over 50 people. Co-founder Michael Gokturk, explained that this was due to the large influx of customers. Like the team at Bitstamp, Einstein Exchange is turning to the labor markets to be able to handle the sudden rise in business.
Big names are affected too
Popular cryptocurrency exchanges, like Bittrex, Bitfinex, Binance, and Cryptopia, have all reported shut downs in the past month. Although normal service has resumed and trading volumes are at all time highs, exchanges are still working hard to prevent future shutdowns. Bittrex published a snapshot that showed how it serves three million active users a day, no doubt encouraging its operations team to shore up the exchange's processes.
The cryptocurrency boom is in its infant stages, so exchanges must be proactive in meeting demand. If last December was an indication of the future, exchanges should expect continued surges in new users.