In response to the AWS collapse, BXB Exchange CEO, Kwun Phite Consunji Lock, was very critical about it stating, “Exchanges need to think more about security and look past the so called cloud servers that can put users data in jeopardy”.
On August 23rd, 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. Kwun Phite, along with BXB’s head developer (whom was originally the head developer of the Shanghai Futures Exchange), commented on the recent mishap stating, “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.”
“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” – Kwun Phite, CEO of BXB.
The news of this spread all over the world from almost every exchange. And at the same time, to make matters worse, there is evidence that users of Asian exchanges were withdrawing 1 BTC for only the price of 10 US dollars or even 30 cents.
As of 10:50UTC, the current status of AWS’s Tokyo infrastructure is still not functioning properly and unable to connect to the servers.
Fortunately, the shutdown has not yet led to a drastic change in crypto prices as BTC is still trading around $10,184 despite reports of BTC selling for less than $10. Markets for the most part are still relatively calm with normal volumes reported. “Now the reputation of many exchanges depends on whether they can manage to reject suspicious transactions” , says Kwun Phite, “We created our platform as experienced, professionoal financiers, and not as programmers. I believe it is necessary to chase not for the short term greed, but for the stability of the exchange, not matter what the conditions are, because any collapse can affect the reputation of the crypto exchange market and our user’s welfare. We need to invest in our server’s architecture, not in the design”
BXB has also announced that they intend to invest about 10 million US Dollars in the security of their servers. With the intent of benefiting their users as the end goal.
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