WazirX is now valued at over $1 billion, the first for any crypto-currency exchange in India. In the last 24 hours, the market capitalisation of the crypto-exchanges’ token ‘WRX’ grew by nearly 200% to $1.23 billion. As a result of this surge in demand and higher trading volumes on the platform, on Sunday the exchange faced a server outage.
WazirX’s founder and chief executive officer, Nischal Shetty said, via Twitter, that trading volumes on the exchange shot up significantly to over $270 million and as a result the platform breached the internal limits set by one of its infrastructure providers which is why the exchange went down. For many users on the platform, trades and settlement information were not available on the exchange in addition to delays in processing transactions.
“When one part of the system fails, it causes a ripple effect on all the services. Takes time to bring things back up due to the scale at which we operate. Please have patience, it’ll be back up soon. Team is on it,” Shetty said.
No matter how much you prepare for traffic, some system loads are crazy.
Wallet is safe, yes. The load on our systems are way too much. Scaling is taking longer. https://t.co/H5rklCILPm
— Nischal (WazirX) ⚡️ (@NischalShetty) April 4, 2021
Last week WazirX’s crypto token WRX witnessed an exorbitant amount of demand leading a surge of 1,170 % in its value to over $5.5 as of mid-Monday morning compared to $0.47 a week ago, as per Coinmarketcap. In the last 24 hours, trading volumes on the platform grew by 2,224% worth a total of $3.17 billion.
The supply of the token has been set at close to 1 billion and so far a little over 237 million coins are in circulation. This means that as demand for WRX rises and more coins are issued, the price of the token will only go upward.
As of Monday morning, the crypto-exchange had enabled trading once again stating that all their users’ investments were safe. According to CoinGecko, the 24-hour daily trading volume of WazirX stood at over $369 million across 134 coins. WazirX also announced that it would be upgrading its systems during the day which would include a short downtime of the platform.
📢 We’re undergoing a 30-minute long downtime
We’re undergoing a short downtime today, 5th April 2021 from 12 PM – 12:30 PM IST to upgrade our database. The following will be unavailable during this period:
👉 Fiat deposits & withdrawals
— WazirX: Bitcoin & Cryptocurrency Exchange in India (@WazirXIndia) April 5, 2021
MediaNama has prepared a guide on crypto-currency regulations in India, listing the government’s position over the last few years and various policy recommendations; read it here: A complete low-down on crypto-currency regulation in India.