The largest crypto in India recently crashed due to excessive demand from buyers to purchase Dogecoin. In the past three days, the daily volume of purchases for the meme coin skyrocketed massively. Doge recorded an average daily trading volume of $42 billion. This is 3x the previous average volume.
According to Nischal Shetty, who is the founder of the WazirX exchange, the sudden rise in the demand for the Doge led to extremely high traffic on the platform. This eventually made the exchange crash because the high volumes were interpreted as bad traffic by their systems.
WazirX however later discovered that contrary to what they perceived the traffic to be, it was good traffic and not a cyber-attack on their systems.
Like Robinhood, Like WazirX
Defending their platform, the founder of WazirX revealed that they were not the only exchange affected by the price surge and high demands. He referenced Robinhood, an exchange that has been existing for about a decade who also had similar issues. The massive increase in price of the meme coin led to technical issues too on Robinhood just a few days ago.
The CEO further stated that the exchange is still relatively new, just three years old at the moment and as such, users should not expect absolute perfection from them. He also boasted of their role in the Indian crypto space, stating that no other crypto exchange in India has experienced such a huge amount of traffic.
Since the onset of the year, the exchange has grown its user base by over 300%. Due to its commendable growth rate, demands on the platform have also surged and unfortunately, WazirX has struggled to keep up with the high demands.
The platform has frequently had technical issues in the past, some relating to basic features like issues with OTP and a lack of customer support. Some users have also complained of their deposits getting stucked on the platform.
Technical issues on crypto trading platforms in India is quite common. This has made many banks in India turn down the opportunity of servicing crypto exchanges.