- Major US Bitcoin and altcoin exchange Coinbase experienced a system-wide outage on May 14, causing significant disruptions for users and sending shockwaves through the crypto market.
- Users were unable to access their accounts or make transactions, leading to frustration and financial losses.
- Coinbase responded quickly via their official social media channels, acknowledging the outage and assuring users that their funds were safe.
Major US Bitcoin and altcoin exchange Coinbase experienced a system-wide outage, causing significant disruptions for users and impacting the crypto market.
Coinbase Outage Shakes Crypto Market
The outage, which began on the morning of May 14, prevented users from accessing their accounts or making transactions. Visitors to the Coinbase website were greeted with a generic “503 Service Unavailable” message, indicating overloaded servers or ongoing maintenance. This lack of access, combined with the inability to trade, led to disappointment among users, particularly active traders.
Financial Losses Reported
Reports emerged of significant financial losses due to the outage. Analysis of trading data revealed a series of market sell orders executed during the outage. These orders could potentially lead to missed opportunities or unfavorable trading prices due to “slippage”. One user reportedly lost approximately $1.5 million.
Not an Isolated Incident
This is not an isolated incident for Coinbase. The exchange experienced temporary outages in February during a surge in crypto trading activity, leading to an astonishing $100 billion loss in Bitcoin’s market value within a few minutes. The market’s reaction to the current outage is notable. While some link the outages to increasing trading volume as a potential bullish signal for cryptocurrency prices, Bitcoin’s price experienced a drop of approximately $1,000 coinciding with the reported Coinbase issues.
Current State of the Crypto Market
Bitcoin’s price drop coincided with the issues at Coinbase. Although not entirely related, Bitcoin’s price reacted with a sudden price drop, dragging it down by almost a thousand dollars. The asset dropped from $62,700 to $61,450 within minutes. Moreover, BTC experienced a $2,000 drop from its peak of $63,400 the previous day. Coinbase’s status page highlighted the issue only a few hours ago and added that the team had started investigating the issue. Minutes ago, there was another update stating they continue to investigate the issue.
Conclusion
Coinbase is currently working to resolve the outage, and updates are being provided via social media channels. However, the incident serves as a reminder of the growing pains associated with a rapidly evolving financial system like cryptocurrency. As the crypto market matures, ensuring the stability and reliability of exchanges will be critical in boosting user confidence and fostering wider adoption.
