Poloniex exchange goes down before Bitcoin records an all-time high on Friday. In a recent tweet, the exchange said it was unexpected and they are already investigating the issue.
The exchange made several updates on their Twitter account. They informed their customers that the site is in maintenance mode. Also, their spot and margin markets are in post-only modes, and withdrawals are temporarily suspended. It was re-enabled later on including the BCH trading.
The issue on the exchange has caused some users to mistakenly credited with BCH but was also fixed as per the update on their Twitter account. It has also assured its customers regarding the safety of their funds. As of writing, all operations are now back to normal. No further update was given yet about the reason behind the exchange going offline.
Meanwhile, Bitcoin’s all-time high was recorded at $18,828 surpassing its $18,500 critical area last Friday.
One of the possible reasons could be due to heavy traffic caused by the bitcoin’s recent bull run.
The issue with Poloniex has also happened to other exchanges in the past. On Mar. 13, BitMEX went offline due to a hardware issue with their cloud service provider. The exchange went offline for 25 minutes. But there were rumors that the exchange was involved in the manipulation of the bitcoin price after the cryptocurrency dropped to $3,700 at that time. Coinbase was also accused of intentionally crashing the site after going offline four times during bitcoin price hikes.
In the past few weeks, we have seen a number of several crypto exchanges getting involved in controversies. One of the most recent so far is that with OKEx. When this happens, their reputation gets tainted resulting in a loss of trust from their customers, and a possible shut down. Trust between exchanges and their customers is very vital for them to continue existing. Transparency is not just a preference but a must.