The last year we have experienced how cryptocurrencies surged in price and volume. The demand for these currencies has been growing without stopping. With the mainstream media covering how the market was evolving, more and more users started to get involved and invest. That’s one of the reasons why cryptocurrency exchanges are now not accepting more users, at least temporarily.
Cryptocurrency Exchanges Closed for New Users
Exchanges like Binance, Coinbase, Bittrex or Kraken are receiving several new users per day. For example, Binance has reported more than 250,000 users per day. Coinbase more than 100,000 and Kraken 50,000+ new users.
This influx of users is something that is not possible to resist. Developer teams are working several hours to offer the best possible support for the platforms but they are not able. The customer support of many of these cryptocurrency exchanges are overloaded.
The situation has created severe usability problems for these platforms. In December, Bitcoin Cash was listed in GDAX. The platform was so congested that it did not allow some users to keep their trades. Kraken, for example, experienced different problems during 2017 and even suffered from a major system overhaul.
Back in December, Bittrex has written an alert to its users:
“We have received an enormous number of new account registrations over the past few weeks. Unfortunately, we have to make a few upgrades to our support and backend systems to handle the increased traffic and load.”
Bitfinex has been experiencing the same problems. If a new user wanted to sign up to the platform the following message showed up:
“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”
Old Customers Privileged
If new users would be added to these cryptocurrency exchanges, then, it would not be possible to offer a good quality service. If the customer support and trading had to be disabled due to the high volume of requests, the system must change. At the moment, these exchanges are working in order to upgrade the infrastructure and allow new investors to join the platform.
Besides that, the cryptocurrency market keeps expanding. New currencies are gaining momentum and many others are surging in price. Some exchanges are not able to keep adding new cryptocurrencies due to the fact that they would not be able to provide a good quality service. The main objective now is to equilibrate the situation for the older users and upgrade the infrastructure for new investors.
Image Courtesy of Pixabay
- Cointipping and Why It’s on Its Way Out - Nov 7, 2019
- Bithoven Exchange Announces New Margin Trading Services For Users After Several Requests - Jul 11, 2019
- Binance Exchange Launches a New Fiat Crypto Exchange Called Binance Jersey - Jan 17, 2019
- VISA Acquires Ripple’s Partner Earthport After Closing a £198 Million Deal - Dec 29, 2018
- Report Says Cryptos Could Soon be Legalized in India - Dec 28, 2018
Tags:Binancebitcoinbitcoin priceBitfinexBittrexBTCCoinbaseCryptocurrenciesCryptocurrency ExchangesEther PriceEthereum PriceExchangesHigh DemandHow to buy BitcoinKrakenKuCoinpoloniexVirtual CurrenciesWhere to buy Bitcoin