14 Aug, 2021

Cryptocurrency Exchange Lashes Out At AWS, Post Collapse

Recently we reported that, Indian company Wipro and Amazon Web Services (AWS) have collaborated to set up an innovation center at the Wipro campus in Bangalore, India.

The innovation center would serve as a hub for specialized teams and will be dedicated to fields such as Artificial Learning (AL)/Machine Learning (ML), Internet of Things (IoT), Blockchain, among others.

While this is great news for sure, there is an aspect to the AWS that we as laymen did not anticipate. Recently AWS collapsed and with it, took down many exchanges that were hosted on it. For the uninitiated, last Friday, numerous cryptocurrency exchanges collapsed due to the failure of Amazon’s web services around the world. According to sources, the AWS server’s architecture was the main point of failure that sent hundred of API’s to malfunction. Binance, BitMex, KuCoin, and other major crypto exchanges have already reported about problems with their servers which forced them to shut down their withdrawal and deposit services.

In response to that, BXB Exchange CEO, Kwun Phite Consunji Lock penned a sharp critique on the issue.

Lock said, “It is time for exchanges to stop the greed and moral hazard they instilled on their platforms. Using a centralized cloud server such as, AWS, has been simply unacceptable. Our exchange runs on its own servers without third-party solutions and spends more capital to maintain the stability users deserve. Due to our unselfish efforts, our users were unaffected from what unfolded.”

He added, “On Friday, millions of users across numerous crypto exchanges were dealt with the inability to withdraw their funds. “Many exchanges use other third party solutions, buying them on the side as white-label ready made solutions. But the reality is that, when these so called “solutions” fail, not only do these exchanges experience a collapse but also their users. And it’s our uses that we should put first in our business.”