Robinhood is one of the major crypto exchanges in the US. And recently, it faced a major outage. This resulted in the Robinhood crypto trading feature being down for quite some time. But it seems they have figured out the problem and have fixed the underlying issues that caused the outage. It is not surprising to see that major exchanges are facing outages due to the overwhelming response of users. Even Wazirx in India was down for 6-10 hours a week back due to the huge spike in usage.
Reason for the crash
Yes, it is the same thing again. Robinhood also claimed that they are facing scalability issues due to the huge demand for crypto trading. As the price of Bitcoin has surpassed the $60k price point while ETH is trading at over $2400 it is no doubt that users are getting into the crypto game. All major companies that have not prepared for the huge overload that servers could face are going down. And only after that, they are taking steps to fix the issue.
After fixing everything, Robinhood tweeted that they fixed the issues with the crypto trading feature and apologized for the problem caused. This is good in the sense that we are seeing substantial growth in the crypto sector. So much so that companies are not able to handle the traffic in their servers.
Other instances of such crashes
I talked in the introduction that how the Binance owned WazirX crashed a few weeks back. It was due to the huge overload in the server, which was caused by the WRX coin’s popularity. The same day, the price of WRZ rose from about Rs 130 to over Rs 400 in a few hours. And this bought in so much traffic and transaction volume that the server went kaboom. The CEO of the company Nischal, gave live updates on Twitter, and the issue was fixed in under 12 hours. Even they apologized for the problem caused but were also happy about the growth they have seen recently.
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Also Read: Blackrock says crypto could evolve into a ‘great asset class’
