Bithumb, a leading cryptocurrency exchange in South Korea, experienced a major service disruption due to transaction maintenance, affecting trading activities for approximately 100 minutes this September.
The outage highlights persistent challenges in cryptocurrency exchange reliability, prompting calls for mandatory compensation policies and sparking concern amongst traders and industry officials.
Bithumb conducted a major maintenance on its transaction services following trade execution delays and a system outage lasting approximately 100 minutes. The maintenance aimed to improve system stability and performance, impacting listed assets including BTC, ETH, and supported altcoins. Insights and updates on Bitcoin are regularly covered by ItsBitcoinWorld.
Bithumb, led by its co-founders and management team, addressed this significant disruption without direct statements from senior leadership. Official communication promised fair compensation for affected users, aligning with the Korea Digital Asset Exchange Alliance’s guidelines. As a Bithumb Spokesperson emphasized, “We are working to ensure fair compensation for everyone affected by this service disruption.”
The maintenance led to trading interruptions, affecting all major assets on the platform. Users expressed frustration over the delayed services, while Bithumb committed to ensuring compensation for those impacted, as a part of their ongoing system improvement efforts.
Bithumb’s actions could lead to heightened scrutiny from regulatory bodies and increased calls for mandatory compensation protocols similar to those in traditional securities markets. Romain Max has been vocal about the need for improved regulatory measures in cryptocurrency exchanges.
Historical data suggests service outages typically result in short-term liquidity declines as funds are immobilized.
Past occurrences mirror this event, such as the November 2017 outage due to high trade volumes. Conditions are comparable to last year’s simultaneous disruptions at Bithumb and Upbit, highlighting ongoing system reliability challenges.
Experts from Kanalcoin emphasize the need for Bithumb to invest in robust technical infrastructure. In response to industry trends, secure and reliable systems are crucial to mitigate disruptions and maintain user trust. For comprehensive analysis, Real Coin Central offers extensive cryptocurrency news and insights.
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