Users have been experiencing issues with Reddit over the last few days as many have struggled to access their accounts on Kucoin.
When volume increased on the exchange the first noticeable thing was the inability to access tokens that were paired with USDT. Soon after, the exchange implemented Cloudflare which came with some controversy.
Cloudflare is a service used by many companies to protect against DDOS attacks. Such attacks allow thousands of machines access to one website at the same time, overloading servers.
The main issue with Cloudflare is it can sometimes make websites inaccessible to normal users. Cloudflare will slow the number of devices able to access a site at the same time, causing queues for website access.
Cryptocurrencies are very volatile, and when the price of a token or coin changes dramatically many people flood to buy or sell simultaneously.
This type of traffic happens due to the majority of investors involved in crypto assets being individuals and not large institutions.
Many cryptocurrency holders are known for being emotional traders and purchase crypto assets without a strategy. This lack of strategy can lead to fear when a token price goes down; and fear of missing out when a token price rises.
Kucoin is not the first to implement Cloudflare services most have the service to help with the growing demand for crypto assets. The issue lies in the number of users they allow at one time.
When prices changed dramatically, many took to Reddit to complain about Kucoin and its inability to access accounts.
Kucoin is one of the exchanges that offer leveraged trading. If you purchase cryptocurrency and the price goes down, the value of an investment will decrease but with leveraged trading, a user can lose all of their investment if the price goes the wrong way.
This uproar on Reddit caught the attention of Kucoin who had their CEO, Johnny Lyu, create his own thread with a response.
Many had rumored that Kucoin was purposely restricting access for financial gain over lost leveraged trades. Lyu said, “As a neutral platform, we do not profit from users’ liquidation. Therefore, we are constantly introducing new functions and educating users to help them manage their futures positions properly and reduce the risk of liquidation.”
The CEO also pointed out that most of the top exchanges use Cloudflare and they would be looking to better tweak the system so it could handle the stress of the demand.
With the end of the year looming, is crucial to crypto enthusiasts that Kucoin fix the issue quickly – or suffer a loss of users as many look to more stable exchanges.
Despite the response from Lyu, many more threads have been created discussing the issue which is still ongoing. It will be up to Kucoin to fix this issue quickly.
If you want to use crypto for entertainment, you can still do this outside of the mainland at gaming sites such as Bitcasino.io, 1xBit, or FortuneJack.