Bitcoin Price Tanks as Unplanned Exchange Maintenance Leaves Customers Stranded

[cheezcarls]

As Bitcoin’s price started to tank on Sunday, the Deribit futures trading platform, which has been in the headlines recently for the wrong reasons, had a bout of unplanned downtime.

Many traders feel the timing was detrimental and left many at a disadvantage. The exchange explained that an internal system error forced them to restart all their nodes.

Source link here

For me, this is an unprofessional and disrespectful move by Deribit futures trading platform. As Bitcoin is tanking, things could get worse for those who are trading in this platform.

I have accounts in multiple exchanges, and most of them are announcing in advance about system or emergency maintenance in their respective platforms. I just don’t know why are they doing this to their users. I only knew that those platforms who does the same “unplanned” thing would only give them time to prepare to exit scam.

I’m not saying that Deribit futures trading platform will also do the same thing, but for me, it’s not good for business to do unplanned maintenance. It will only create frustration and anger to the users of this platform alone.

When this news came out, Bitcoin was around $6,700+ before climbing back now to $7,100+.

[MURONDI]

Yes, the exchange must notify prior to treatment, because it concerns the interests of many people, Such incidents will surely make most users feel disadvantaged, after this happens, many users will come out and choose a more professional exchange.

[The Sceptical Chymist]

These are futures trades we're talking about here, so how much does it really matter if the platform goes into maintenance mode?  I would think it'd be much worse if they were trading actual bitcoin, because traders would be unable to buy or sell.  But futures are basically bets on the price of bitcoin, and it isn't like the contracts get cancelled because of something like this.

Maybe it's my ignorance, since I've never traded futures.  It always sucks when an exchange goes down, and ones that deal with crypto are usually 24/7 unlike stock market exchanges and brokerages. 

Never heard of Deribit, BTW.  I didn't know there was another place offering bitcoin futures other than Bakkt.

[Kprawn]

Do you remember that the exact same thing happened on multiple exchanges when the Bitcoin price was at it's all-time-high back in 2017. The

exchanges excuse : Trading platform could not handle the high volume traffic.     I think it is totally BS and these exchanges and trading platforms

do this on purpose to prevent a mass dump or panic sell scenario. They know the bots will go crazy and it will trigger a dump, so they crash the

system until things have returned to normal.  

[DreamStage]

I do think the same as almost everyone on the matter that the exchange makes that so it doesn't explode their own servers.

Due to high demands of selling and people losing their mind with price getting lower each second exchange servers could just overheat and delaying transactions even further.

The processing of data could be delayed as deadlocks could occur within few intervals causing exchange to basically blow up.

If they are thinking on these sort of issues then im ok with those, else it will probabily turn out on scamming.

[SaShiRaJaVu]

I have accounts in multiple exchanges, and most of them are announcing in advance about system or emergency maintenance in their respective platforms. I just don’t know why are they doing this to their users. I only knew that those platforms who does the same “unplanned” thing would only give them time to prepare to exit scam.

If you consider the market volatility in the bitcoin market then selecting the best place is to trade is a big factor and i will not trust any exchange that goes offline for maintenance without any prior notification and all the investors should avoid these  kind of unprofessional exchanges as the amount of loss you will have to suffer are huge, when you are investing and a trader make sure to select the best exchange which is transparent.

[electronicash]

i don't really mean when you say downtime like the host of the website just having maintenance but if its just deribit that experienced the downtime, its not an unplanned maintenance. if its the later, they deliberately do it.
 
deribit must have been laughing their ass when all those who shifted from BTC to USD had been burned, unable to buy back while the price is $6,700.  there is no such thing as coincidence when they are making money out of it.

[sikke]

The price dip had nothing to do with the exchange, or at least, nothing to the scale that the article is implying here.

I've deribit for a long time now and never had issues, and it is really out of character for them to have an unplanned maintenance in such volatile times. They were just making a name for themselves against their competitor Bitmex and this will set themselves back quite a bit.

But at the end of the day, I'd still trust them. They seem very competent and their trading engine is still one of the best.

[TheUltraElite]

Deribit coming offline does not necessarily mean that the price going down was the effect. Deribit is like what BitMex is and you could speculate on the prices and buy contracts there for a future price, called margin trading.

Now what is possible is that a group of whales buy contracts on a certain price, which they have decided on and then dump the market to reach that price so their contracts go through before getting liquidated but this is a very longshot idea. The amount of bitcoin needed to move the market by 1% of its price is very big so it is less likely.

"Unprofessional" "disrespectful" are wrong words here. Being subjective makes you take the wrong decision. If you dont like them dont use them.