New “turbulence” is threatening the cryptocurrency market, after the suspension of withdrawals on the AAX exchange, citing a bug in a system upgrade.
AAX is a relatively small cryptocurrency exchange with data from CoinGecko showing that trading volumes last month “peaked” at around $2 billion.
In the last 24 hours, that number dropped to around $180,000. In contrast, Coinbase’s volumes exceeded $1.5 billion in the same 24-hour period.
The cryptocurrency world has been rocked in recent days by the collapse of the well-known exchange FTX, with the fallout spreading to companies like BlockFi and Galaxy Digital.
According to a notice on the Exchange’s website, an error attributed to a third-party partner led to the “abnormal logging” of some other users on the system. “AAX will continue its best efforts to resume normal operations for all users within 7-10 days to ensure maximum accuracy,” the notice said.
In a statement to Bloomberg, AAX vice president Ben Caselin said:
“The FTX situation has put tremendous pressure on trading everywhere, with users concerned about their holdings on the exchanges.”
Furthermore, Caselin added that, “it is my observation that this can be resolved in a matter of days, although rebuilding market confidence may take months,” while adding for AAX that “funds are intact.”