Leading crypto exchange Binance crashed following the news that electric vehicle giant Tesla had purchased $1.5 billion worth of Bitcoin. The company was unable to process verification for user login. Logged in users also faced the problem of setting up new buy orders to invest more capital in the leading cryptocurrency.
Within minutes of the massive announcement, Bitcoin added almost $6,000 of value. Rallying above its previous all-time high of $42,000 and going on to chart a new record just shy of $45,000.
These developments brought unexpected issues for leading crypto exchange Binance. The company said on its Twitter account that “we are aware of some temporary difficulties,” and promised that “our team is working on it.”
Binance CEO Changpeng Zhao explained that the problems are due to “massive incoming traffic”. Jokingly pinning the blame on Tesla CEO Elon Musk. Zhao noted the lags are observed only in some regions and also asserted that everything should be resolved soon.
Users predictably were not happy with the technical difficulties. As they expect to have instant access to their funds especially during times of extreme volatility. Popular British YouTuber KSI most notably complained about the issues on Twitter.
Elon Musk Causes Technical issues with Binance
Something similar happened in mid-January when Musk updated his Twitter profile to include only the word “Bitcoin”. The price went parabolic again, prompting Binance, Kraken and Bittrex to experience technical difficulties.
On that day, Zhao tweeted that Binance was facing all-time highs in all directions, including new accounts, new deposits and trades.
However, Bittrex surprisingly was unaffected by this latest disruption. That said, it is important to consider that the level of activity witnessed by Binance might not be same as any other platform at the moment.
In addition to the price of Bitcoin setting a new all-time high following Tesla’s announcement, Musk spent the better part of last week tweeting about meme cryptocurrency Dogecoin.