Yet another altcoin exchange is experiencing problems with a major coin, this time being Crypto Rush with Bitcoin. It is saying that Bitcoin is offline due to stuck transactions and that it will take a while for this to be resolved. No exact time for the maintenance window was provided, although they tweeted that markets will “resume sometime tonight”.
They become the second altcoin exchange in as many days to experience problems. Yesterday, Dogecoin was down on Cryptsy for a brief period before returning online. The nature of the issue is still unknown.
FBS CopyTrade Launches a New Card Scanning Feature!Go to article >>
The wording of the Crypto Rush update may spook some paranoid traders, being reminiscent of the ominous developments on MtGox before its collapse. While less likely in this scenario, traders may gravitate toward exchanges offering the greatest confidence when it comes to maintaining robust integrity with the blockchain in warding off hacking attempts.
Most affected by the trading suspension are Scrypt miners. As their hardware is available to mine multiple Scrypt based currencies, they will often migrate between alt-coins based on which ones are providing the best profitability in relation to their energy costs. Exchanges like Crypto Rush that offer diversified alt-coin trading provide a marketplace to convert mined crypto-currencies into bitcoins or litecoins which can more easily be distributed among participants of mining pools or exchanged into fiat. As such, a disruption in bitcoin trading may lead Crypto Rush miners towards other exchanges to fulfill their conversion needs.
DC Magnates will be monitoring the status and provide an update as soon as it becomes available.