More Than They Can Chew…
The problem for WazirX may go beyond one-offs though.
“Clearly, the recent system outages are instances of WazirX biting off more than it can chew,” said Vishal Gupta, co-founder of Bitcoin Alliance India, a non-profit organisation that educates people on cryptocurrency.
“The exchange has seen a tremendous rise in its trading volumes as many new-to-crypto users have begun using the exchange after the Bitcoin rally. But their infrastructure is obviously not being able to meet this demand spike,” he said. “While this goes on to show that more crypto users are trading on the exchange, WazirX needs to expand and upgrade its systems at a much higher pace to address server failures.”
The complaints are also higher for WazirX as its crypto user base is the largest in India, said Gupta.
Agreed, Gautam Chhugani, director for financials and fintech at Bernstein Research. “It’s just unprecedented demand. The exchange has been facing server capacity issues and some delays in deposits, but those could only be addressed over time as its systems upgrade.”
Shetty of WazirX accepts they have problems to solve.
“We’re learning, adding checks in place, and scaling our systems to handle more traffic and be better prepared for the future,” he said.
All said and done, Dogecoin has given WazirX a “ruff” time!