Amazon Web Services (AWS) powers a huge number of websites and web applications around the globe. AWS allows companies to host their website or web application from a server close to the end-user, allowing the end-user to have a faster and more enjoyable experience. However, when AWS suffers from an outage it can wreak havoc for companies relying on its services.
Over the weekend, AWS suffered an outage in its Tokyo-based servers, leaving crypto exchanges in the region suffering heavily. A number of crafty crypto traders took advantage of the outage and managed to make off like bandits with $1 Bitcoins.
Snapping up Bitcoin for $1
Typically, when AWS suffers an outage like this, crypto exchanges in the affected region will temporarily suspend trading, withdrawals, and deposits – just to cover their backs. Yet, a number of exchanges decided to leave trading online, causing prices to crash on the exchanges to as little as $1. A handful of traders managed to place limit orders for Bitcoin at $1 and these orders were successfully filled thanks to an orderbook crash – also known as a black swan crash. These traders then managed to withdraw the Bitcoins before the exchange shut down operations.
Kucoin is affected as well pic.twitter.com/Ke7MRzwa8g
— Dovey Wan ? ? (@DoveyWan) August 23, 2019
KuCoin, BitMas, and Binance all felt the pinch in Asia, with all of them being too slow on cutting trading and withdrawal features from their platforms. As the traders managed to withdraw the Bitcoins, it could prevent the exchanges from getting their BTC back – a rather costly mistake.
Not the First AWS Outage
Oddly enough, this wasn’t the first time AWS suffered an outage. Back in November 2018, an AWS outage left Upbit users without access to crypto markets. Fortunately, Upbit detected the outage and shut down its operations in South Korea to prevent a black swan crash and $1 Bitcoins. Other exchanges in the region weren’t so quick to react, leading to a black swan crash on a number of Korean exchanges and people scooping up low-cost BTC.
Binance API users in the region were hit with downtime, meaning traders suffered from orders not being filled. During the time of the outage there was no real action in crypto markets, meaning traders didn’t miss out on too much. The cause of the AWS outage was put down to a newly installed server overheating in Tokyo. As AWS continues to falter, Cloudflare has launched its own decentralized content distribution network – a potential option for crypto exchanges in the region. AWS needs to step up its game, as exchanges are losing out big time every time an outage strikes.