Speaking to Bloomberg, CEO of Binance, the largest cryptocurrency exchange in terms of trading volume ($5.7 billion in the last 24 hours), shared that a “couple of million” new accounts were being created on the exchange every week.
Cryptocurrency exchanges have been caught unprepared for the massive inflow of new customers as the crypto phenomenon takes the world by storm. Unable to handle the high demand, most exchanges closed new sign ups over the last two weeks.
Binance however, has been allowing signups intermittently via referral links, and the CEO shared that yesterday, 240,000 people created new accounts in just one hour.
“We did not expect this kind of growth to be honest,” he said, adding that the exchange is now “beginning to get a lot of interest from institutional investors.”
The sheer scale of newfound interest in cryptocurrencies can be estimated by the fact that Binance, according to the CEO, is hitting server limits every day, and has an employee dedicated to just requesting new servers from Amazon, whose AWS offering is among the most reliable in the world.
“We have a guy whose full-time job is just requesting servers. Every day they say, ‘OK, here are 200 more,’ but we just ask for more.”
2017 was a major year for cryptocurrencies and saw their overall market cap go from around $18 billion to a staggering $600 billion, with several cryptocurrencies giving investors 10x and even 20x returns.
With such profits on investments which have almost no minimum limits, the crypto-rush is not surprising. However, traditional investment bankers and veterans such as Jamie Dimon and Warren Buffet have been critical of the crypto boom, calling it a bubble which is not going to end well.
While the market has both supporters and critics, investors should always keep the risks in mind, particularly the volatile nature of cryptocurrencies.