Bitcoin Exchanges | The main trading platforms for bitcoin and crypto currency on the global market add more than 100,000 new users per day. Many of the leading crypto currency exchanges such as Coinbase (GDAX), Binanance, Bittrex, Bitstamp and Kraken had to struggle with the abrupt demand for crypto currencies. Some exchanges have revised their systems to improve their scalability, while others have temporarily suspended the opening of new user accounts.
Bitcoin Exchanges with unexpected growth rate
This week, Changpeng Zhao, founder and CEO of BINANCE, the largest crypto currency market in the global market with an amazing $9.5 billion in daily trading, found that his platform added more than 250,000 users in a single day.
“I’m sorry, existing members have a higher priority at this point. Our team works around the clock. Both technology and support. There is simply too much demand. 250,000 new users have been added in the last 24 hours,” said Zhao, referring to the company’s official statement.
On January 4, Binance said, “Due to the overwhelming increase in popularity, Binance needs to temporarily disable the registration of new users in order to upgrade its infrastructure. We apologize for the inconvenience caused. ”
The Bitcoin Profit development team
In December, both Kraken and Coinbase provided a significant portion of their resources and capital to improve customer service and review and scalability Bitcoin Profit of their platforms. On December 23, Kraken announced that it has implemented major system upgrades and performance improvements and will continue to develop its trading platform to support new users.
The Kraken development team admitted that its current infrastructure was “degraded and unreliable” and decided to improve it in January. The company said:
We have made significant progress over the past week https://www.scamcontrol.net/bitcoin-profit-review/ with the system upgrades and achieved a moderate increase in performance. Unfortunately, we were not able to perform all upgrades and the most effective measures are still to come. For the time being, our systems should still be considered degraded and unreliable.
Regional exchanges such as South Korean Bithumb, the world’s second largest crypto currency exchange in terms of daily trading volume, have also stopped adding new users.
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Why do big Bitcoin Exchanges fight?
At the end of 2017, South Korea’s third largest crypto currency exchange Korbit was acquired at a price of $140 million from a $10 billion gaming giant in Nexon. Given the size and market value of Korbit, large exchanges such as Bithumb, Bitstamp, Kraken and Binance could be worth more than $1 billion, as Coinbase was valued at $1.6 billion in its latest financing round.
Even with such a high market valuation, high profit margins and many resources, the crypto currency exchanges have difficulties satisfying the exponentially increasing demand of investors. The reason for this is the government’s directive, which forces companies to precisely identify their customers using the KYC procedure.
Every new user must be approved and checked manually. Failure to do so could result in heavy fines and legal proceedings for the Bitcoin Exchanges. Consequently, the user review process is rigorous and requires considerable effort on the part of the employees of the exchanges.
Given that the Bitcoin Exchanges add more than 100,000 users daily, the exchanges are also likely to receive more than one million trading account approval requests per month.
This means that if the account approval process takes approximately 10 minutes per account, 166,666 hours must be manually applied by employees on a monthly basis.