Major exchanges struggle as Bitcoin pumps on $1.5B Tesla investment

by Gordon James

The eighth. In February, after Tesla invested $1.5 billion in bitcoin (BTC), service outages were reported on major cryptocurrency exchanges.

As previously reported by Cointelegraph, news of Tesla’s significant investment was briefly halted after it was discovered that the company had filed with the US Securities and Exchange Commission. This drove the price of bitcoin up by $3,000 in a matter of minutes, eventually reaching a new high of $44,850.

The problems were reported on a number of exchanges, including Binance, whose CEO CZ tweeted that the influx of traffic had caused temporary delays while auto-scaling caught up, and that Tesla CEO Elon Musk was to blame.

Massive incoming traffic. Delays have been noted in some regions. Automatic scaling. He’ll catch up soon. All because of Elon.

– CZ Binance (@cz_binance) 8. February 2021

Many Kraken users complained on Twitter that the site was also down, although there was no official confirmation from the exchange itself.

What a surprise! The TV system turns up the volume and @crackenflex goes down! Thank God I hardly have to resort to you, because there are new ones coming in the crypto world, avoid them at all costs!

– Crypto Carl (@CryptoCarl_) 8. February 2021

The outage reports are just the latest in a seemingly endless cycle of problems that occur on major exchanges when traffic peaks, causing some in the crypto community to go wrong.

Despite assurances from the exchanges that past problems have been resolved, platforms continue to break down regularly during busy periods, such as when prices are rising, a time when most investors want their services to be at their most stable.

In addition to news of Tesla’s $1.5 billion investment in bitcoin, a report filed with the Securities and Exchange Commission shows that Tesla will begin accepting bitcoin as a form of payment for its cars. Since the company can now own the bitcoin shares, it does not have to immediately liquidate the tokens acquired in this way.

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