It was a very interesting day for cryptocurrency enthusiasts yesterday, albeit not for the right reasons. As markets continued to tumble, several key service providers suffered from “convenient” issues.
Both Gemini and BitMex had trouble staying online and reliable yesterday.
Bitmex and Gemini Stumble Under Pressure
In the case of Gemini, that is a bit surprising, given its solid reputation and infrastructure.
For Bitmex, it is the latest development in a growing list of strange incidents.
Both platforms suffered from minor outages, and eventually returned without too many problems.
The timing at which this happened raises a lot of questions.
Given how volatile all markets were, service providers cannot go offline under any circumstance.
This applies especially to a derivatives trading platform such as Bitmex.
When it goes down, additional market panic ensues automatically.
Bitmex claims a “hardware issue” is to blame for the outage.
Albeit traders are protected by the insurance fund, it is still a worrisome development.
If centralized exchanges can drop offline, these markets will never be taken seriously by any means.
It only further highlights the absolute need for distributed and decentralized trading solutions.
Unfortunately, those will not come to fruition for some time to come.
If the industry is to evolve, moving away from traditional exchanges is paramount.