June 15, 2021

An Official Statement from Changelly. Behind the DOGE Incident

4 min read

Dear Changelly users,

We would like to issue an apology for the situation surrounding DOGE exchanges in the previous couple of days and shed some light on what has actually been going on behind the scenes.

DOGE bull run

doge price chart

This previous week we have actually been experiencing occasions we never ever believed were possible, both worldwide of traditional trading and here, on the crypto market. Although we have remained in this market for over 5 years now, we have never in the past seen such unity and friendship among traders – – especially when it pertained to pushing such a recognized coin as DOGE to the moon. What’s going on right now is honestly incredible, however, we have actually not been effectively gotten ready for this particular situation.

As we’ve currently announced, on January 28-29th we got approx. 15.000 exchange requests via our web and mobile apps in addition to our API partners, that include such giants as Exodus, Ledger, and Coinomi. We had the liquidity to process whatever, however DOGE’s quick development activated our internal process that aims to decrease the consumer’s losses in case of considerable market swings.

Loss Limit Protocol slowed down the processing

Here’s how this procedure works:

If our system finds that the actual quantity we are sending out to the user depends on 25% off from the one approximated at the minute the deal was initiated, then that transaction is offered the “pending” status and has to be pressed through manually. In order to assist our users to not lose their funds, we call each client whose deal is pending to inquire whether they want to push it through at the present rate or release a refund.

In the past, prior to this system was set up, our users typically used to lose cash on substantial market swings. Sadly, crypto exchanges are not rapid, and the rates can change drastically within mere minutes. In reaction to our users suffering losses and our partners’ requests, we have chosen to embrace this process. It has actually exercised fantastic before – – on average 40% of our users choose to request for a refund, this system assisting them to prevent losing their cash. This time, however, our support team was overwhelmed with demands and was unable to return to the customers whose transactions were pending.

Support was overloaded

Our assistance team is responsible for contacting clients and learning whether the user wishes to push their transaction through or refund it. We might refrain from doing anything about the pending transaction before we received the customer’s action. Nevertheless, on those 2 days we have been swarmed with an uncommonly high variety of messages, which produced a roadblock that prevented us from appropriately carrying out the process we’ve described above. As an outcome, processing times were increased.

On a normal day, our support group has around 20-50 chats open simultaneously, but on January 28th, that number reached 500. This was primarily due to the frustrating variety of pending deals, but also related to how disorderly the crypto market was at the time, which developed panic. These scenarios made it impossible for us to identify which users were messaging us about their pending deals and which ones had issues that could wait or were not problems at all. Our only alternative was to briefly disable live assistance and handle all demands by means of tickets, which can be sent through [email protected]

DOGE was disabled

As an outcome, in just a few hours 2253 transactions got stuck, as we could not call users to ask whether they desired their transaction to be pushed through or reimbursed. We tried to disable the abovementioned internal process, but it was taking us too long. After some factor to consider, we chose to disable DOGE and stop working all new incoming DOGE deals. If we had not done that, more user funds would’ve been stuck as the pending transactions would’ve continued to pile up, and the backlog would’ve reached huge numbers.

Exchange partners stopped withdrawals

As all of this was going on, our partner exchanges such as Binance likewise closed withdrawals, which increased processing times even further.

We are presently still working on sorting out all the pending deals.

We assure you that all requests will be managed. Our top concern has actually always been and will constantly be the safety of our users’ funds, so we take utmost care in ensuring that each of you can get your refund.

Here are some numbers

  • Out of 3800 tickets, just 150 are delegated be processed. Live chats are expected to release tomorrow.35% of all deals were performed much better than preliminary quotes, 50% – – with 1-3%discrepancy from the quotes, 12% – – with approximately 10%discrepancy, and lastly only 3% of all DOGE transactions were performed with more than 10% variance
  • 165 DOGE deals are yet to be processed – – and that number is growing smaller by the hour
  • 550 refunds have actually already been released, with less than 50 to go

Important note! We cancelled network fees on refunds for all DOGE transactions that have actually been initiated on January 28-29th.

To conclude, the procedure described above was created to safeguard our clients, but unfortunately did not represent day-long pump and dump techniques. We understand what requires to be changed, and we will enhance this system so we are prepared for comparable situations in the future.

Best,

Changelly Team

The post An Official Statement from Changelly. Behind the DOGE Incident appeared initially on Cryptocurrency News & & Trading Tips– Crypto Blog by Changelly.