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As Soundnode depends on Soundcloud therefore any problem that Soundcloud face with the API it will affect Soundnode.
Soundnode doesn't store any of your passwords, as a matter of fact Soundnode don't have access to your login/password it just authenticate with Soundcloud API.
Keep in mind Soundnode relies on Soundcloud API only allowing third party apps to play 15 thousand tracks daily. When the rate limit is reached all users aren't able to play any song until the end of the current day the limit was reached.