With everyone from chemists to street sweepers piling into Bitcoin, crypto exchanges are struggling to keep up with demand.
Exchanges worldwide are adding around 100,000 new users each day, even after the recent pullback in the Bitcoin price.
CRYPTO EXCHANGES SURGE
The surge in sign-ups peaked in January and caused lengthy delays in verification. A number of top exchanges were forced to stop accepting new users, or to impose limits on new sign ups while they upgraded their systems to cope. Users flooded social media to complain of server downtime and painfully slow transactions.
Binance had to put a cap on new users after 240,000 users signed up in a single hour. The exchange only opened in July 2017 but has since signed up 7 million users and has become so popular it sometimes trades more than $8 billion USD a day. In February it went offline for a day and a half — an outage that was lengthened by the huge amount of user data Binance has on its servers.
CEX.IO, Bitfinex, Bittrex, and Kraken have all reported similar difficulties in handling the flood of new users.
But the huge surge in demand has also created enormous commercial opportunities for new exchanges such as the Melbourne-based Nauticus Exchange.
NEW OPPORTUNITIES FOR CRYPTO EXCHANGES; NAUTICUS
Set to open soon, the exchange will initially offer 100 cryptocurrencies, which will increase to more than 300 as soon as practicable. That’ll put it in the top ten exchanges worldwide.
The exchange will have a truly global focus and will support six major foreign currencies — USD, EUR, JPY, HKD, AUD and ZAR. This will later expand to 16 fiat.
Only BTC, ETH and the Nauticus Coin will be able to be directly exchanged for all 100 of the other altcoins. Users of the Nauticus Coin will get a 50 percent discount on trading fees, which will drive the adoption, use and price of the coin.
A similar strategy by Binance, saw the Binance Coin increase in value by 22,000 percent to its all time high. Even its current price is a 10,000 percent rise from the ICO.
THE FUTURE OF SUSTAINABLE CRYPTO EXCHANGES
Nauticus will also establish a sustainable, large-scale blockchain mining center next year that will provide additional revenue, and a sizeable amount of server capacity to ensure ultra-fast processing for all users of Nauticus services.
Profits will be reinvested in the business to support the development of a low-cost eCommerce marketplace, along with merchant and peer-to-peer payment platforms. These will be underpinned by the Nauticus Coin, Exchange, Mobile App and Wallet.
The company will also offer ‘one and done’ Know Your Customer (KYC) verification and create an ICO community, which will provide resources and services for new ICOs as well as a quality verification system.