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Crypto Exchanges & Services Experience Damage due to Cloudflare Outage

21 Jun, 20222 min readOther
Crypto Exchanges & Services Experience Damage due to Cloudflare Outage

This morning, FTX, OKX, Bitfinex, Bitmex and Coinbase are reporting that they are having problems accessing sites due to Cloudflare hanging up. Such platforms as Xumm Wallet and Discord were also experiencing troubles. As for now, the fix has been implemented, and the issue has been resolved.

The Cloudflare team is aware of the current service issues and is working to resolve as quickly as possible. Updates can be followed here. — Cloudflare (@Cloudflare) June 21, 2022

CZ educates his opponents on how to avoid outage problems

While many crypto exchanges and services experienced problems, Binance continued to operate. Some of its services, like CoinMarketCap, of course, were also suspended, but the work of the exchange itself did not stop.

The head of Binance, Changpeng Zhao, when asked what the secret to success is, said that the exchange uses a backup setup for Cloudflare, while many others rely solely on it.

Welcome to decentralization. We just have a redundant setup for one of the services many others rely on solely. Lucky. — CZ 🔶 Binance (@cz_binance) June 21, 2022

What is interesting is that CZ ironically mentioned the word decentralization in his tweet, alluding to the not quite canonical working style of its fellow competitors in the sector. And indeed the question arises: Can there be real crypto decentralization, when a short-term suspension of one of the web services is enough to shut down half of all crypto companies?

The question remains open, but it seems obvious that in the pursuit of building web3, even short outages of companies maintaining servers or providing cloud services should not interfere with the work of basic services or exchanges. In an ideal web3, there should be no "500 Internal Server Error."


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