Dogecoin mania reached Indian crypto exchanges and crashed its websites
After Ethereum and Bitcoin, it is now Dogecoin that has taken the internet by storm. The global trading volume of Dogecoin tripled last week and it hit more than a whopping USD80 million market cap recently. Dogecoin, the quirkiest cryptocurrency born out of a Doge meme back in 2013, is now gaining the most attention from crypto traders all around the globe.
It is a peer-to-peer, open-source cryptocurrency and its underlying technology is scraped off of Litecoin script. The low cost and the unlimited supply of coins make it highly acceptable among the crypto networks around. The recent Coinbase listings resulted in its value surging to a new record. Elon Musk has also been very vocal about crypto, which mostly seemed supportive. Recently Musk called the crypto a ‘hustle’ on a popular US comedy show, Saturday Night Live, which brought down the value of Doge. However, two days back Musk’s SpaceX announced that it will be launching its ‘Doge-1 Mission to Moon’ in 2022 and will accept Dogecoin as the payment. This has again resulted in much frenzy around this meme-inspired crypto.
The Dogecoin trend gradually reached India and the cryptocurrency exchanges in India witnessed record-breaking trading volumes of Dogecoin. This resulted in increased traffic on the trading platforms, which slowed the system and crashed it. One of India’s largest and most trusted cryptocurrency exchange platforms, WazirX, reported a fund transfer issue and system slow down due to the sudden surge in traffic. According to a Times Now report, a statement by WazirX stated, “It is a peer-to-peer, open-source cryptocurrency and its underlying technology is scraped off of Litecoin. The low cost and the unlimited supply of coins make it acceptable among the crypto networks.” Users took the issue to social media and complained about the transactions issues on Twitter through #WazirXScam that soon became trending.
It was unfortunate that such a big trading exchange could not manage the user traffic with a sudden demand for accelerated Doge transactions. WazirX had clarified in their responses that they were unable to accommodate the user traffic and ensured that they will repair it soon.
Further on May 10th, WazirX tweeted, “Trading issues have been resolved. We’ve enhanced our trading experience that will handle the heavy load due to high volumes. We’re improving the app/website experience further and will keep #BUIDLing.” Another platform CoinDCX also came up with a crackdown due to a surge in doge trade.
Dogecoin saw this escalated price movement after the anticipated appearance of Elon Musk on the Saturday Night Live show. Since Musk had been tweeting in support of Doge non-stop, traders took the hint as a prospective time to invest in the cryptocurrency. Another Indian crypto exchange CoinSwitch Kuber disabled its INR deposits temporarily. The platform tweeted that it is caused by the end of their Bank partner and will fix it soon on April 21. A report by the Economic Times revealed that since the hint on Musk’s appearance in the TV show, CoinSwitch Kuber witnessed a surge of INR600 crore in Dogecoin trade in 24 hours and it registered 200% trade volume month over month. While all this was happening, ZebPay stayed away from this frenzy by not hosting Dogecoin on its platform.
Meanwhile, the Indian Government is planning to introduce new regulations on cryptocurrency trading. The revised framework would demand the company details, and statements of profit and loss in digital currency trades, etc. The crypto network in India is already anticipating a strict move from the central authorities and that is when such a frenzy overtook the crypto exchanges. Many traders blamed the exchange platforms for not having the better capacity and not expecting any trade surge. The mania over Dogecoin dropped down once Musk uttered the word ‘hustle’ in the show. The Crypto market is ever volatile and thus there have also been statements from experts asking not to trust much in cryptocurrency investments.
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