Coinbase Battles System-Wide Outage Amid User Complaints of Withdrawal Issues
Summary:
On May 14, Coinbase, the world's second-largest exchange, experienced a significant system-wide outage that was resolved after three hours. While the company claimed full recovery, some users reported enduring difficulties, particularly with asset withdrawal and transfers. This issue, combined with earlier "degraded transactions”, can potentially forfeit the trust of mainstream users, who typically use centralized exchanges like Coinbase due to their user-friendly interface. Decentralized exchanges show significantly lower trading volumes in comparison.
On May 14, cryptocurrency exchange giant Coinbase experienced a substantial system failure. Revealed through their status page, the disruption lasted for three hours, beginning at 4:19 am UTC, with normal operations restored by 7:34 am UTC.
Even though the exact cause of the downtime is yet to be clarified, Coinbase emphasized that they will continue to delve into the root of the problem. In terms of trading volume, Coinbase is currently the world’s second largest exchange, boasting a 24-hour trading volume of $2.4 billion, compared to Binance, the market front-runner, with over $18.7 billion, as per data from CoinMarketCap.
Although Coinbase declared a full recovery of the systems, several users reported ongoing issues. Among the user feedback, one claimed, “This tweet is incorrect as numerous individuals still can't withdraw or transfer their assets.” As it stands, there have been several reports of users experiencing difficulties with cryptocurrency transfers and cash withdrawals being unresponsive.
Coinbase’s status page noted that on May 14, alongside the system-wide outage were “degraded transactions”, an issue which they stated had been resolved by 4:19 am UTC.
Centralized cryptocurrency exchanges like Coinbase and Binance are usually the initial contact point for conventional users buying digital assets for the first time, largely due its user-friendly environment when compared to decentralized exchanges (DEXs). Therefore, system disruptions and withdrawal glitches on centralized exchanges can significantly damage mainstream trust in the crypto sector.
DEX trading volumes are considerably smaller than centralized exchanges. As of Monday, DEXs had accumulated over $585 million in global trading volume, which is a mere slice of the $4.6 billion in trading volume generated by centralized exchanges as reported by Kaiko Research.
Published At
5/14/2024 11:57:40 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.