Following a system-wide outage that lasted for over three hours, Coinbase claimed to have resumed operations. However, many customers took to social media to express their frustrations, stating that they were still unable to withdraw their funds. One user, Nigel Dias, shared his experience of encountering a message stating, “Sending to this recipient is temporarily disabled.”
Despite Coinbase’s announcement that the issue had been resolved, reports persisted of users facing difficulties in sending crypto or withdrawing fiat. The platform acknowledged that some customers were still experiencing connectivity problems and assured users that they were actively working to address the remaining issues. However, no specific reasons were provided for the outage, and Coinbase has yet to outline any compensation plans for affected users.
This recent outage is part of a recurring pattern of disruptions experienced by Coinbase in recent months. The platform’s status page revealed a concerning trend, with 14 incidents reported in the current month alone, following 29 incidents in April and 36 in March. The lack of transparency around the causes of these outages raises questions about the platform’s reliability and ability to provide uninterrupted service to its users.
Coinbase’s service disruption coincided with a drop in Bitcoin’s price, which fell to $61,400 from $62,660 before partially recovering to $61,780. This price action led to the liquidation of approximately $50 million in the past four hours, predominantly affecting long traders. The correlation between Coinbase’s outage and Bitcoin’s price movement highlights the interconnectedness of the cryptocurrency market and the implications of service interruptions on trading activities.
Coinbase’s recent outage underscores the importance of robust infrastructure and contingency plans in the crypto trading ecosystem. The platform’s frequent disruptions and the lack of clear communication regarding the causes and resolutions of these incidents raise concerns about its reliability and ability to support a growing user base. Moving forward, Coinbase must prioritize transparency, accountability, and proactive measures to prevent future service outages and mitigate their impact on users and the broader market.
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