A service outage was reported on major cryptocurrency exchanges on February 8, after the news that Tesla had invested $ 1.5 billion in Bitcoin (BTC).
As Cointelegraph previously reported, news of Tesla’s massive investment broke out after the discovery of a file with the US Securities and Exchange Commission. This caused the Bitcoin price to spike to $ 3,000 within minutes, ultimately claiming a new all-time high of $ 44,850.
Problems have been reported on a number of exchanges, including Binance, whose CEO, CZ, tweeted that traffic flow was causing temporary delays during the automatic expansion, and that Tesla CEO Elon Musk is to blame.
Huge incoming traffic. Some delay was observed in some areas. Automatic scaling. You should catch up soon. It’s all because of Elon.
– Czechoslovakia Binance (cz_binance) February 8, 2021
Several Kraken users have taken to Twitter to complain that the site is down too, although there is no official confirmation of this from the exchange itself.
what a surprise! There is a rise in size and Embed a Tweet Is down! Thank God I hardly use you anymore, because new is coming into the crypto world, avoid it at all costs!
– Crypto Carl (CryptoCarl_) February 8, 2021
The reported outages are only the latest in a seemingly never-ending cycle of issues that occur in major exchanges when traffic volumes rise, causing some in the cryptocurrency community to shout “wrong”.
Despite assurances from exchanges that past issues have been addressed, platforms continue to crash regularly during periods of high congestion such as price hikes; The time when most investors want their service to be at its most stable.
Aside from news of Tesla’s $ 1.5 billion Bitcoin investment, the report to the SEC suggested that Tesla would start accepting Bitcoin as payment for its cars. Since the company can now hold reserves in Bitcoin, you don’t need to immediately liquidate tokens earned this way.