espite Coinbase's assurance that issues were resolved after a significant system outage, users continue to report problems with withdrawals, casting doubts on the platform's stability and impacting Bitcoin prices.
Details of the Outage
Coinbase experienced a substantial outage affecting its website, mobile apps, and API, which lasted over three hours. The service interruption began around 4:19 AM UTC and was officially resolved by 7:42 AM UTC, according to the platform's status page. During this period, users reported failures in sending cryptocurrencies and withdrawing fiat currencies, with the platform acknowledging these as "service degraded" incidents.
User Experiences
Post-outage, several Coinbase customers took to social media to express their frustrations, stating that withdrawal issues persisted. One notable user, Nigel Dias, mentioned on X (formerly Twitter) that attempts to transfer crypto were met with messages stating, "Sending to this recipient is temporarily disabled." This has led to confusion and dissatisfaction among users, who expected a full restoration of services.
Lack of Transparency
Coinbase has not yet provided a clear explanation for the cause of the outage nor discussed any potential compensation for affected users. This incident adds to a growing list of disruptions, with the exchange logging numerous technical issues over the past months, including 14 incidents this month and more in the preceding months.
Impact on Bitcoin Prices
The outage coincided with a dip in Bitcoin prices, which fell from $62,660 to a low of $61,400. Although there was a slight recovery, the price of Bitcoin stood at around $61,780 at the time of reporting. The instability contributed to about $50 million in liquidations over four hours, predominantly affecting long position traders. This downturn is part of a broader bearish trend in the market, with Bitcoin's price dropping by approximately 3% over the last week.
Navigating Through Technical Difficulties
The recurring issues at Coinbase are causing significant concern among its users, who are experiencing disruptions in their trading activities. The lack of clear communication from Coinbase regarding these outages and their implications on user transactions is adding to the uncertainty. As the crypto community continues to grow, the demand for reliable and transparent service from platforms like Coinbase becomes increasingly critical.
