The Binance cryptocurrency exchange experienced a system overload on Sunday, with Binance CEO Changpeng ‘CZ’ Zhao claiming the slow response time was a product of a spike in trading volumes following a sharp drop in cryptocurrency prices.
We seen ATH for trading system load about an hour ago, some users experienced ui delays during system auto scaling. Still improving.
— CZ Binance (@cz_binance) February 24, 2019
The exchange is currently the largest cryptocurrency trading platform available, at least by trading volume. The platform’s system load hit its all-time high following a dramatic drop in Bitcoin’s nominal price.
Over the weekend, Bitcoin entered a tumultuous period as it attempted to break the $4,000 mark before breaking down to around $3,750.
Due to the increase in trading volume, the exchange seemingly had issues dealing with the increase in traffic.
According to CZ, the Binance platform is now working to find a solution to enable effective scaling during periods of intense trading.
The system overload would have been problematic for many traders if they had not set their orders ahead of the volume spike.
This is because the user interface became delayed, and so traders might not have been able to close positions during price movement.
Bitcoin’s current level of volatility illustrates the importance of both the 50 and 100-day moving average as key levels of support. If the support doesn’t hold, there could be even more losses on the horizon.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.