Aussie exchange, CoinSpot Briefly Surferred Downtime Amid Massive Traffic

Server outage is somewhat becoming a norm for major cryptocurrency exchanges whenever digital currencies start to skyrocket in price, amid massive capital inflows. Coinbase and Binance saw massive trading volumes in December as Bitcoin climbed to US$20,000, which consequently took down their servers, as Crypto News Australia reported.

Following the rush in the crypto market yesterday, especially for Dogecoin (DOGE), one of the leading Australian crypto exchanges, CoinSpot, briefly surfaced a downtime in the earlier hours of today.

CoinSpot Dropped due to 5000% Increase in Traffic

CoinSpot took to Twitter to inform its users about the sudden downtime and difficulties in processing orders. While commenting on this, some people accused the exchange on Twitter of intentionally shutting down the website due to liquidity issues. Some of the users also claimed to have lost some money due to the incident. 

Per the claims, CoinSpot crashed probably because they don’t have sufficient funds to meet the demands of traders trying to cash out their profit from Dogecoin. 

However, the exchange addressed the development in a subsequent tweet, saying the issue was caused by massive traffic on the website. CoinSpot reportedly gained about a 5,000 percent increase in the average daily users earlier today, which led to the downtime. However, the exchange has resumed its normal trading functions as the server issue has been addressed, according to the tweet. 

Why Dogecoin is Spiked Over 1,000%

The massive increase in the market price of Dogecoin aligns with the recent GameStop-stock development. Just like GameStop, a group of Redditors had collectively pitched making DOGE the equivalent of GME in cryptocurrency. This resulted in over 1,000 percent growth of Dogecoin above US$0.07. However, the cryptocurrency is currently trading at $0.03904 on Coingecko, which represents a 248.28 percent increase in a 24-hour count.

Find out if CoinSpot is an expensive exchange to buy Dogecoin in Australia.