Dogecoin, the meme cryptocurrency, has been experiencing a surge in its value, for the past few weeks. This sudden surge has affected the services of WazirX, India’s largest crypto trading company in volume. Within a month, for the second time, the exchange services were halted for a few hours. The exchange users took it to the social media platform to complain about the transaction delays.
After receiving a bulk of complaints from the users, Wazirx put the whole blame on the meme coin. The exchange said that for the past few weeks, Dogecoin has been experiencing a rise in its value, which has attracted more users to the cryptocurrency exchange.
A report published recently by Coinmarketcap.com, the crypto data aggregator, has stated that a year ago, the value of Dogecoin was $0.02 but on May 05, 2021, the value reached $0.65. Further, it has been mentioned that the market value of meme coin has shot up over 270 times to $85 billion, within a year.
Some of the crypto traders believe that Elon Musk’s Saturday Night Live appearance is the reason, Dogecoin is experiencing a sudden surge in its value.
Musk’s frequent tweets regarding Dogecoin helped the cryptocurrency to grow in the market. From May 03 to May 05, the trading volume of this meme coin experience a three-times growth of over $42 billion, globally.
Nischal Shetty, the founder of the WazirX, has recently said, “We’re seeing a new all-time-high every day in terms of trading volumes, active users, and traffic on WazirX. On May 4, one of our systems—on detecting high traffic—wrongly marked it as bad traffic and started blocking the requests. It was good traffic, and this error caused our users to have intermittent access to the app.”
However, the users of the Indian trading platform were not very happy with its services. They took their anger to social media to complain about it. A few people even posted memes about it.
Since Dogecoin has started going up, WazirX found a new user base. But this has been challenging for the exchange as it has to maintain new users account, active traders account and also it’s trading volume.
As per the report, since January 2021, the trading volume on the exchange has increased by over 300 percent.
While talking about Dogecoin’s surge, Shetty has stated, “The Dogecoin price surge was so massive that it caused an almost decade-old company like Robinhood to go down. He further mentioned, “WazirX is a three-year old company, and apart from us, no other crypto exchange in India has ever seen this kind of traffic.”
The users of WazirX do not agree with Shetty, fully. One of the users of the exchange has claimed that whenever there is a surge in the market, the exchange faces some issues. The user has further specified that since January 2021, they have been facing issues on the exchange.
Additionally, he said that there is WazirX’s chat group on Telegram and Reddit.com, where the users regularly discuss the issues they face on the exchanges. After going through the chatbox, it has been found that whenever the exchange experience growth in its trading volume, some issue always arises on WazirX.
On April 04, the trading volume on the exchange reaches over $270 million and soon after that, WazirX crashed. The company took almost a day to resolve the issue.
A month later, when the exchange was crashed again, the CEO of the company blamed the scheduled downtime for that.