Client Influx Forces Popular Crypto Exchanges To Block New Users Registrations

Cryptocurrency trading exchanges are struggling with an influx of new clients, a move that has prompted some of them to block their new doors to new traders. Over the past one year, there has been a massive jump in cryptocurrencies prices, resulting in a buzz of activities and clients in the space.

It now appears that an influx of traders and investors into the space is taking a toll on some of the popular exchanges ability, to provide reliable services. The influx of new users has essentially created congestions and exchange backlogs.

Clients have had to contend with server latency as well as difficulties in interacting with all web and API services. The situation has become dire, to a point that requests frequently time out and fail.

Binance exchange is no longer accepting new client registration after confirming it is overwhelmed by a surge in popularity. The popular cryptocurrency exchange platform joins CEX.IO, Bitfinex, and Bittrex that have announced difficulties in supporting surging new businesses. An influx of investors into the fast-growing space has reportedly caused severe operational difficulties.

Binnace halting new client applications comes as a surprise, given that it is one of the largest and hottest cryptocurrency exchange. The platform handles approximately $6 billion worth of deals on a daily basis, its user base having skyrocketed to $2.9 million since mid-last year.

Cryptocurrency investors have been flocking to Binance platform partly because of its service, technology, and affiliates. However, its lax client verification process has also acted as a magnet on investors looking for an easy way into the cryptocurrency space.

Bittrex has also halted new client’s registrations on concerns that increased load and trading volume was affecting the platform

“We are excited to have so many new users who want to join the Bittrex community. Unfortunately, we have to make a few upgrades to our support and backend systems to handle the increased traffic and load,” Bittrex In a statement.

CEX.IO on its part says that an enormous number of new registrations into the exchange had put enormous pressure on support and verification process. Bitfinex says it cannot accept new registrations because by doing so, it will be undermining the quality of its services for existing clients.

While some exchanges are yet to confirm that they are halting new registrations, soaring complaints already indicate it might not be business as usual in the cryptocurrency exchange space. Having too many clients onboard has also made it extremely impossible for the exchanges to provide quality services.

Kraken, for instance, acknowledges that an influx of new clients results in performance being extremely degraded and unreliable.

Some exchanges have tried to address the issue by hiring new staff to handle new requests. Others have had to upgrade their physical infrastructure but as it stands, the efforts are yet to have the desired impact.