To say that cryptocurrencies have exploded in recent years would be an understatement. Not only have they risen by an astronomical degree, but they have also become widely accepted throughout the world as well. Even companies have started either working with them or are offering various cryptocurrency options of their own.
And over the years, it has also become a more acceptable form of investment, as various serious investors have even included them in their portfolios. Throughout all traders looking to make money off it, they all have one thing in common: they use a messaging app from facebook. So when the entire framework crashed for six hours yesterday, the crypto market took a serious hit.
Trading volumes started to plummet as people were not able to use services like Whatsapp or Facebook messenger. Fortunately, people were able to shift to other platforms like telegram, which allowed them to continue how they would work.
Many financial institutions have warned traders against the danger of using most messaging services from Facebook. Not only are they less secure than other platforms, but they are also a lot less stable. However, since they are easier to use and are widely available, most traders use it anyway. And these traders paid the price yesterday when they were not able to use the services for over six hours.
Not only was this the largest downtime for a company the size of Facebook, but it was the largest down time that any company has ever experienced. Other reports estimate that Mark Zuckerberg lost close to $6 billion due to the outage, which closed off Instagram, facebook, and Whatsapp.
One of the many companies to take a serious hit from the outage was the BCB Group. They are a crypto firm in London that specialize in offering a variety of OTC cryptocurrencies. They quickly went on to Twitter to air out their frustrations about the services not working properly.
The Chief executive for the company said that the shutdown occurred when they would start dealing with their US clients, making it quite the damaging situation. They were also quick to mention that their trading was down by 15% as soon as the shutdown hit, as they would now have to move to other platforms. On platforms like Telegram, their trading jumped back to the daily averages.
The blackout from Facebook happened to be one of the strangest things to happen during the year. Not only did it negatively affect business, but it was something that could have been easily avoided. Fortunately, most businesses started to work back at full capacity when the services came back online.