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Amazon AWS technical problems affect crypto exchanges

Samson Ononeme | Aug. 23, 2019
Amazon AWS technical problems affect crypto exchanges

Amazon AWS technical problems have resulted in delays in deposits and withdrawals on several cryptocurrency exchanges on Friday.

August 23, 2019 | AtoZ MarketsIssues with Amazon Web Services (AWS) has caused problems for leading crypto exchanges in Asia, leading to withdrawal problems, 404 messages and even anomalous orders getting filled.

Binance, one of the largest crypto exchanges was one of the markets affected by the outage, as part of its services relied on AWS.

KuCoin exchange suffers from Amazon AWS technical problems

Another popular exchange, KuCoin was affected and also warned about limitations to some of its services:

Due to the overheating of part of our chassis in the machine room we deployed in AWS, Tokyo, part of our services might become unavailable.

KuCoin further clarifies that their engineers are working to mitigate the problem in order to resume all operations. Today's outage is yet another example of how much the crypto market relies on cloud services. Beyond exchanges, some nodes and storage facilities use AWS or other cloud-based services to offer a faster, global experience.

The co-founder of Primitive Ventures, Dovey Wan also tweeted that the AWS outage led to trading anomalies on Asian exchanges. The order books were mistakenly allowing very cheap Bitcoin (BTC) purchases:

Amazon AWS technical problems

While sometimes rogue trades are rolled back, it is quite possible that some traders were able to withdraw before limitations were set. Apart from Binance and KuCoin, Tokyo-based crypto exchanges have not reported any issues thus far. However, BitMex reportedly announced the closing of deposits and withdrawals, so as to avoid loses based on mistaken orders.

Furthermore, critics saw the usage of AWS as a weak spot, and an example of dangerous centralization, exposing the crypto ecosystem to additional risks:

Amazon AWS technical problems

AWS current status shows that the Tokyo infrastructure is still affected, reporting connectivity issues still active as of 10:50 UTC.

Today's outage has not led to dramatic price moves, as Bitcoin price remains mostly unchanged around $10,18, unaffected by the outage. Despite reports that the outage allowed investors to buy bitcoin for as low as $10 or even $1, the crypto markets are still relatively calm.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.