Coinbase recently experienced a system-wide outage that affected its website, mobile app, and API for over three hours. While the exchange claimed to have resolved the issue, many customers reported that they were still unable to withdraw their funds. One user, Nigel Dias, shared his experience of trying to send crypto only to be met with a message stating, “Sending to this recipient is temporarily disabled.”
This outage is just one of many that Coinbase has faced in recent months. The exchange’s status page reveals a staggering number of incidents, with 14 logged in May, 29 in April, and 36 in March. These disruptions have left many users frustrated and questioning the reliability of the platform.
Despite the frequency of these outages, Coinbase has failed to provide a clear explanation for the issues or any compensation for affected users. The lack of transparency from the exchange only adds to the frustration felt by customers who rely on the platform for their crypto trading needs.
The outage coincided with a drop in Bitcoin’s price, further compounding the issues faced by traders. While the flagship digital asset did recover slightly, it still resulted in the liquidation of approximately $50 million in the past four hours, with losses mainly affecting long traders. This market impact highlights the ripple effect that technical glitches on major exchanges can have on the entire crypto market.
The Coinbase outage serves as a stark reminder of the risks associated with relying on centralized exchanges for crypto trading. The lack of transparency, frequent disruptions, and market impacts all contribute to a growing sense of unease among users. As the crypto market continues to evolve, it is crucial for exchanges like Coinbase to prioritize stability, reliability, and clear communication with their customers. Failure to do so could have far-reaching consequences for both the platform and the wider crypto ecosystem.
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