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Coinbase exchange crashes as Bitcoin price rally causes frenzy

Wednesday, February 28, 2024 03:08 PM | Invezz via QuoteMedia

Coinbase exchange crashes as Bitcoin price rally causes frenzy

2024-02-28 15:08:15 ET

Coinbase exchange has experienced a crash amid the bull market, leaving users to see a ‘zero’ balance in their accounts.

Users express anger on social media

The crash has sparked outrage among crypto enthusiasts on social media, as many are unable to access their funds on the leading U.S. exchange.

Complaints about errors in buying and selling have added to the frustration.

Coinbase responds to the issue

Coinbase quickly acknowledged the error, stating that it was under investigation.

The exchange also noted severe delays in transferring funds over the Ethereum ERC-20 network.

Brian Armstrong, CEO of Coinbase, mentioned in a separate post on X that the exchange is managing a significant increase in traffic.

User reports of issues spiked to over 9,000 earlier in the afternoon, as tracked by Downdetector.

However, by 1:46 p.m. ET, the number of reports had decreased to around 240.

Coinbase Global announced that it is looking into an issue that has led to some users seeing a zero balance in their accounts, potentially causing errors in transactions.

Our team is investigating this and will provide an update shortly. Your assets are safe.

The crypto exchange assured in a message posted on the social media platform X.

This technical glitch occurred as Bitcoin soared to $60,000 on Wednesday for the first time in over two years, driven by a surge of investments into new U.S. spot bitcoin exchange-traded products that fueled a price rally in February.

Traders have been actively investing in Bitcoin in anticipation of the cryptocurrency’s halving event in April, a mechanism intended to reduce the speed at which new bitcoins are created.

Speculations about strategic move by Coinbase

Some users speculate that the crash might be a strategic move by the exchange to prevent flash sales, especially as primary tokens like Bitcoin and Ethereum have seen significant rallies today.

Bitcoin briefly reached $64,000 before falling back to the $61,000 range. However, other reports attribute the crash to an unprecedented surge in traffic due to today’s bull market.

Other major exchanges face similar issues

There have been unverified reports of similar crashes at other major exchanges, including Binance and KuCoin.

Recurring technical issues during bull markets

Coinbase’s crash is not an isolated incident, as technical problems have recurred during every bull market, overwhelming the platforms’ ability to manage the influx of buying and selling.

This has led to widespread frustration among the crypto community, with many criticizing Coinbase and similar platforms for not having robust technical safeguards in place.

The post Coinbase exchange crashes as Bitcoin price rally causes frenzy appeared first on Invezz

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