A major system-wide outage at Coinbase, the leading US Bitcoin and altcoin exchange, caused significant disruption for users and sent shockwaves through the crypto market. The outage, which started on the morning of May 14, caused users to be unable to access their accounts or make transactions.
Outage in the giant Bitcoin exchange
The incident highlights cryptocurrency investors’ critical confidence in the smooth functioning of exchanges. Visitors to the Coinbase website are greeted with a generic “503 Service Unavailable” message, indicating overloaded servers or ongoing maintenance. This lack of access, coupled with the inability to trade, has led to frustration among users, especially active traders.
Coinbase quickly responded via its official social media channels, acknowledging the outage. He then reassured users that their funds were safe. However, reports have emerged of serious financial losses due to the outage. Analysis of trading data revealed a number of market sell orders executed during the outage. These orders could potentially lead to missed opportunities or negative trading prices due to “price slippage.” One user even reportedly lost nearly $1.5 million.
A similar incident occurred in February.
This incident is not an isolated incident for Coinbase. cryptokoin.com As we reported in February, the exchange experienced temporary outages during a surge in crypto trading activity, leading to a staggering $100 billion loss in Bitcoin’s market value in a matter of minutes.
The market’s reaction to the current disruption is also noteworthy. While some attributed the outages to increased trading volume as a potentially bullish signal for cryptocurrency prices, Bitcoin’s price experienced a drop of nearly $1,000 coinciding with the reported Coinbase issues. This highlights the potential vulnerability of cryptocurrency prices to exchange disruptions, especially given Coinbase’s dominant position in the US market.
Latest situation in the crypto market
BTC’s price drop coincided with problems at Coinbase. While not entirely relevant, Bitcoin price reacted with a sudden price drop, which dragged it down by almost a thousand dollars. The asset fell from $62,700 to $61,450 within minutes. Moreover, BTC has fallen by two thousand dollars from yesterday’s peak of $63,400. The Coinbase status page highlighted the issue just a few hours ago, adding that the team had begun investigating the issue. Minutes ago, there was another update saying they were still investigating the issue.
Coinbase is currently working to resolve the outage and updates are being provided via social media channels. However, the incident is a reminder of the growing pains associated with an emerging and rapidly evolving financial system such as cryptocurrency. As the crypto market matures, ensuring the stability and reliability of exchanges will be critical to increasing user trust and wider adoption.
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