Coinbase, recognized as the largest US cryptocurrency exchange, has recently faced scrutiny following two significant outages within a single week as the Bitcoin price climbs higher. These issues have stirred unease among its users.
As Bitcoin approached its all-time high, nearing the $69,000 mark, some Coinbase users experienced alarming display issues, with their account balances erroneously showing zero.
This glitch, predominantly a display error, affected a “small subset of users,” according to a Coinbase spokesperson. Despite the concern it raised, the exchange assured that the assets of those affected were secure. “Monday’s problem was a display issue only,” the spokesperson elaborated, confirming the swift action taken to rectify the situation.
“We issued a fix which remediated the display issue impacting customer account balances and latency across Coinbase.com.”
The recurring outages have prompted the New York State Department of Financial Services (NYDFS) to engage in,
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NYDFS aims to understand the interruptions’ implications on consumer risk and institutional integrity. This heightened oversight comes at a time when the cryptocurrency market is known for its volatility, making operational reliability for exchanges like Coinbase crucial for maintaining consumer confidence.
Following the latest outage, users flooded the Coinbase subreddit to vent their frustrations.
These operational hiccups are not unique to Coinbase. The crypto exchange sector frequently encounters challenges during significant market movements driven by a surge in trading activity.
Last week, Coinbase experienced an influx of traffic more than tenfold its usual volume, illustrating the immense pressure these platforms face amid swift market fluctuations.
“We are dealing with a large surge of traffic – apologies for any issues you encounter. The team is working to remediate,” Armstrong commented.
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Other exchanges, acknowledging the tumultuous nature of cryptocurrency markets, have taken steps to bolster their infrastructure. After facing multiple outages in 2021, Crypto.com CEO Kris Marszalek noted,
“We took two years meticulously fixing and improving stuff.”
This sentiment captures the current state of the crypto market. Many still see it as a frontier of financial technology that is still moving through its growing pains.