The massive fall in the value of Bitcoin yesterday was not due to a DDoS attack, but to a rash of new traders overwhelming systems as they rushed to get a slice of the virtual currency pie, insists exchange MT. Gox.
Just two months ago one bitcoin was worth around $20 but the virtual currency has since seen its value soar, yesterday breaking the $260 mark.
However, it then plunged to around $105, sparking speculation that users were panic selling in the midst of a DDoS attack on exchanges, such as market leader MT. Gox.
Although it was hit by a DDoS attack last week, MT. Gox insists that this time it is just a "victim of our own success" with its technology infrastructure creaking under the weight of new users.
With 20,000 new accounts being opened every day and the number of trades executed tripling over 24 hours the system "started to lag. As expected in such situation people started to panic, started to sell Bitcoin in mass (Panic Sale) resulting in an increase of trade that ultimately froze the trade engine!"
Bitcoin's value has since recovered to around $150 at the time of writing, where it was on Sunday.