Bitfinex Moves 900000 ETH In Preparation Of The Biggest Downtime of Seven Hours
January 5th, 2019
Both Bitfinex & Ethfinex are set to script a new page in the history of crypto -exchanges as the exchange has announced a downtime of seven hours. Most crypto-exchanges halt their operations for a little time to upgrade their systems and to spruce up their operations but seven hours of non-hacked downtime is certainly a big feat.
Bitfinex moves huge chunk of ETH in preparation of the downtime
According to the recent announcement put forward by Bitfinex exchange, the exchange will be performing the biggest non-hacked downtime recorded in the history of cryptocurrency exchange since Mt Gox. Both Bitfinex and Ethfinex will be down for up to 7 hours to complete the migration.
- Account holders will not be able to access their wallets, and all features across both platforms will be offline for the duration of the upgrade.
- The reason for this downtime is that the exchange is moving all its operations and migrating all its data to its private self- hosted servers from AWS servers.
In two days time Bitfinex will be down for up to 7 hours as we migrate to our own dedicated servers, custom-built for cryptocurrency trading.
Please refer to the announcement below and ensure you have taken any necessary steps before 07.01.19. https://t.co/btmtf0W7jr
— Bitfinex (@bitfinex) January 5, 2019
According to the FAQ’s released by the exchange,
“All funds will remain safe and unaffected throughout the entirety of the migration and will not be at risk at any point throughout the update.”
In compliance to keeping the security aspect in place, Bitfinex has moved a huge chunk of 900000 Ethereum from its one wallet to another. The size of this transaction in USD terms is USD 142 million.
The main question here still stands unanswered as to what would the impact on the markets of these large currency moves. Also, it’s unclear how will the market react to this quarter of a day downtime for a prominent exchange like Bitfinex. The challenge for Bitfinex is really high and if it can pull this off really well without security concerns and losing much business it would be a really great achievement.
The exchange does realize that seven hours is a pretty long time in crypto trading and has mentioned the same in the released FAQ’s.
“We appreciate that up to seven hours is a significant length of time in digital asset trading, and we promise we have taken every measure to make this transition as smooth and quick as possible, without compromising on safety or quality. Data migration to private servers is atypical in our industry, modeling traditional stock exchange operations. It has been a considerable undertaking, but one we felt was integral to provide a service up to the standard that professional traders are used to in other sectors.”
According to the announcement, the move to private self-hosted servers would immediately provide the following benefits
- Improved trading speed & performance
- Access to cross-connectivity & co-location services for traders (The FIX feed or ISP link to Bitfinex’s digital asset gateway is for professional traders and institutional firms. For further information, please contact email@example.com).
- Enhanced platform security
Is this seven hours of downtime worth the benefits or will Bitfinex lose a good amount of business its something that is yet to be seen. Also, will it be in a position to fight the glitches once the exchange is up on its own private servers? A lot of questions remain unanswered.