Poloniex Suffers Attacks Seeing 600% More Active Traders in 2017

Over the past few weeks, traders have been complaining about slow trade executions while using the U.S. based cryptocurrency exchange Poloniex. The trading platform says it has recently been suffering from many severe distributed denial of service (DDoS) attacks alongside a surge of mainstream growth.

Also read: Crypto Tales Pt. 1: Odd Stories That Surface in Bitcoin-Land

Poloniex Suffers From Multiple DDoS Attacks Over the Past Few Weeks

Poloniex Addresses Connectivity Issues Sees 600% More Active Traders Lately across social media platforms and cryptocurrency focused forums, there have been users complaining about trading on the exchange Poloniex. Back in April, as the digital currency Ripple XRP began to show its first signs of a bull run the exchange experienced a lot of customers complaining about downtime and trade executions. One individual states that he believes Poloniex is just overwhelmed by all the cryptocurrency price spikes lately saying;

I think they are just overwhelmed. Lots of new users, new trade volume, lots of additional stress on their systems and on coins that haven’t seen this type of activity before.

Since then Poloniex said the platform has had issues with a lot of DDoS attacks and a massive influx of new traders using the exchange. On April 2 the exchange told its users they had full knowledge of connection issues.

“We are aware and are working as quickly as we can to resolve the connectivity issues,” explained the trading platform. Looking at Twitter, Poloniex details that it had connectivity problems on May 7, 8, 12, 13, and also had a stop-limit issue on May 16.

“We’ve been under continuous DDoS attack which inevitably affects other areas of operations,” Poloniex details on Twitter May 13. “We’re mitigating as fast as we can.”

Poloniex Addresses Connectivity Issues Sees 600% More Active Traders

Poloniex Addresses Concerns in a New Blog Post

On May 16 Poloniex detailed its current position via a blog post citing an unprecedented level of new market entrants and DDoS intrusions.

“Malicious threats to an online global exchange, like Poloniex, can occur at any time of the day, on any day of the year, and from anywhere on the planet,” explains the U.S. cryptocurrency exchange.

In the case of Poloniex, these threats are present every day, often with multiple, unrelenting DDoS attacks directed at several endpoints simultaneously.      

Poloniex Captures a 600% Increase of Active Traders and 640% More Transactions

Poloniex also says that the trading platform has seen a significant increase in trading its many markets. “Since January, we’ve seen an increase of more than 600 percent active traders online and regularly process 640 percent more transactions than we did merely four months ago,” Poloniex details.

“In a short period of time, exchanges can see sudden and tremendous swells of new users seeking to create accounts, yet to meet compliance obligations, only so much of this onboarding process can be automated,” the exchange adds.

Additionally, seasoned traders intensify buy and sell activity, and margin positions are rapidly being opened and closed. As trading activity multiplies with an expanding user base, exchange staff and support grow only as fast as human resources can hire.

A Commitment to Scaling Up

Statistics show the exchange has seen a significant amount of volumes over the past four months. According to Coinmarketcap, the trading platform is exchanging roughly 291,917 BTC ($506M) worth of cryptocurrency trades per day. At present, the exchange’s most traded digital asset is Ripple XRP with a $204 million USD 24-hour trade volume. Half a billion dollars worth of daily trades is no small potatoes, and Poloniex says it will continue to be “committed to scaling up.”

What do you think about Poloniex saying there is a significant influx of new cryptocurrency traders this year? Let us know in the comments below.

Images via Shutterstock, and the Poloniex website and Twitter page. 

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  • Claret Tea

    Am not sure why they dont limit/stagger new user signups so they can cater for existing members effectively and ensure that the resources are in place/enhanced to cater for newbies………

  • the_vinci

    There is no DDOS. It’s fake. If site is really down, they why orders are still executing on the site?

  • 600% increase in users and 640% increase in transactions would cripple most companies. Give them a break, they’ll catch up.

  • KB

    DDOS my bolllocks. HIre temp admin staff to carry out the tasks that are not automated while in parallel getting engineers to automate. Broadcast potenital issues BEFORE THEY HAPPEN so users can proactively move funds.

    I have an open ticket with freshdesk for 19 days and 7 hours now – what kind of service is this?

    Hang your heads Poloniex and get the fingers out of your asses

    • Claret Tea

      Yep, they dont reply

  • Claret Tea

    The site has 39900 users online presently. It is and has been impossible to trade. Orders and sells freeze and cant be places. Couldnt sell XRP on high and wore a loss. Now havent been able to sell BCN and have been watch it drop before my eyes. It really is unacceptable. People joined to trade not to view funds disintergrating on a screen

    • Claret Tea

      How are they going to service the 100k+ users as the market expands. That is if there is a market left as consumer confidence gets destroyed!

  • Claret Tea

    Just been trying to trade for the last half an hour and taken screen shots of all of the order timeouts and price drops. As usually when trade did go on it was late and wouldnt cancel…. It is so irrisponsible of a business to overstretch it membership to capacity which makes it disfunctional….People loose alot of money

  • Jason Youngquist

    so what exchange would you all recommend? I’ve looked at GDAX, but it only has 3 currencies – BTC, LTC, ETH.