Traders almost expect it at this point — when cryptocurrency prices gyrate, exchanges buckle as users flood their systems.
It’s not a new issue; rather, it’s one that has plagued exchange venues from BitMEX to Coinbase for years.
IamNomad, an outspoken voice on Crypto Twitter and former market maker, outlined some of the specific issues that kept traders from accessing crypto exchanges during Tuesday’s rocky session, which included laggy market data to orders being rejected. Some platforms, such as BlockFi, were down completely.
In fact, these outages ultimately play a role in bringing the market down further, according to Aya Kantorovich, an executive at FalconX, who said that traders can’t access their spot accounts to top-up on their positions on derivatives exchanges to avoid being liquidation.
“That aggravates the liquidation cascade,” according to Kantorovich.
Broader scope
To be sure, crypto is not unique in experience downtime when markets see significant fluc
