FTX Stutters as Crypto Markets Tank Over CPI Numbers

CEO Sam Bankman-Fried responded: “the website did wonky auto-refreshing for a lot of people”

article-image

FTX’s Sam Bankman-Fried | Blockworks exclusive art by axel rangel

share

key takeaways

  • Most traders point the finger at FTX’s API connection
  • Market volatility has a history of overloading crypto exchanges

When markets are volatile, crypto traders salivate like a husky after the dinner bell. If their exchange of choice experiences downtime right as they’re itching to place a trade, Twitter is a top place to vent.

Following the release of higher-than-expected US inflation numbers on Tuesday at 8:30 am ET, markets took a nosedive. Bitcoin, for instance, fell 6% over the next 25 minutes.

FTX customers began complaining of API outages and intermittent screen refreshes.

“FTX down again? Time for a new browser,” one user wrote, referring to previous interactions with FTX CEO Sam Bankman-Fried, in which he suggested laggy browsers were to blame.

Loading Tweet..

This time, Bankman-Fried threw on his customer service hat and sprung into action.

Loading Tweet..

“…I’m frustrated internally that we didn’t make this particular thing smoother earlier, I’ve woken up half our [developer] team to get things rolled out within the hour,” Bankman-Fried tweeted.

Some users reported being unable to use the platform for around a minute or receiving erroneous notifications of jurisdiction-based blocks.

Crypto exchanges have a history of struggling during brief periods of peak demand, sometimes even spurring legal action as upset traders band together to seek compensation.

An FTX spokesperson confirmed to Blockworks that the tech trouble was linked to the spike in volatility but did not characterize it as an outage.

“There was no downtime, the exchange was running the whole time. Some users who were accessing it via browser found that their webpage frequently refreshed, which made using the exchange slower and more cumbersome,” the spokesperson said.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

ao cover.jpg

Research

Arweave recently launched the testnet for AO computer, a new messaging protocol that will sit atop a PoS network and aims to become a scalable global compute platform through parallel processing and modularity.

article-image

Plus, a Bored Ape burger restaurant closes, and Crypto: The Game presses on

article-image

Bitcoin scarcity is a meme, with or without the halvings

article-image

The current state of blockchain interoperability poses an existential threat to the mainstream adoption of blockchain technology as a whole

article-image

The fighting in pro wrestling is largely fake and the outcomes are mostly pre-determined, similar to Ethereum’s relationship with the crypto ecosystem

article-image

Shakeeb Ahmed was tied to two hacks, and the DOJ first filed an indictment against him in July of last year

article-image

HashKey is expected to be among the issuers who receive the green light, according to the report.