Coinbase will recover after the system outage, but user withdrawals will remain offline.
Coinbase, the world's second largest exchange by transaction volume, experienced a major outage on May 14.
Coinbase announced a three-hour system outage at 4:19 am UTC. The exchange finally made a full recovery on its status page at 7:34 am UTC.
The exchange said on X-Post:
While the exact reason behind the outage is unknown, Coinbase said it will continue to investigate the matter.
Coinbase is the world's second largest exchange with a 24-hour trading volume of $2.4 billion compared to the market leader, according to CoinMarketCap data.
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Withdrawals and transfers are still offline for some users.
Although Coinbase has announced that its systems are fully operational, some users are experiencing technical problems.
In response to Coinbase's announcement, anonymous X user Rocket made the following comment.
This tweet is a hoax as millions of people are still unable to withdraw or transfer their assets.
Many other users have also reported that crypto transfers and withdrawals remain offline, with some users asking X's Community Notes to confirm the fact that Coinbase's post says systems are “fully restored”.
Coinbase's status page said it was experiencing “broken transactions” on May 14, but said the incident had been resolved with a system outage as of 4:19 a.m. UTC.
Offering a simpler user experience compared to decentralized exchanges (DEXs), centralized cryptocurrency exchanges such as Coinbase and Binance are often the first point of contact for end users when purchasing their first digital asset.
Therefore, the issues of system disruption and the withdrawal of centralized exchanges will especially affect the confidence of the majors in the crypto industry.
DEX transaction volumes are very low compared to centralized exchanges. On Monday, DEXs collected more than $585 million in global trade, just a fraction of the $4.6 billion trade volume collected by central exchanges, according to Caico Research.
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