The $0 balances when Bitcoin is nearing an all-time high
Coinbase, known as the largest American cryptocurrency exchange, has recently faced scrutiny following two significant outages in one week, the price of Bitcoin is rising. These problems have sparked unrest among the users.
As Bitcoin nears the $69,000 mark, some Coinbase users are experiencing alarming display issues, with their account balances erroneously showing zero.
Coinbase has battled a second round of outages and glitches.
The outage, mainly a display bug, affected a “small set of users,” according to a Coinbase spokesperson. Despite the risk, the exchange ensured that victims' assets were safe. “Monday's problem was a display issue only,” said the spokesperson, who confirmed that immediate action had been taken to rectify the situation.
We have released a fix that addresses a display issue affecting customer account balances and latency on Coinbase.com.
The repeated outages prompted the New York State Department of Financial Services (NYDFS) to step in.
“Ongoing Relationships with Regulated Entities, Including Coinbase.”
Read more: Coinbase Review: The Best Crypto Exchange for Beginners?
NYDFS aims to understand the implications of disruptions on consumer risk and institutional integrity. This heightened scrutiny comes at a time when the cryptocurrency market is known for its volatility, making the operational reliability of exchanges like Coinbase critical to maintaining consumer confidence.
Following the latest outage, users flooded the Coinbase subreddit to express their frustration.
Crypto exchange traffic is a double-edged sword
These operations are not unique to Coinbase. The crypto exchange sector often faces challenges during significant market movements driven by increased trading activity.
Last week, Coinbase experienced more than ten times the normal volume of traffic, which shows the high pressure these platforms face during rapid market fluctuations.
Coinbase CEO Brian Armstrong tried to allay customers' fears;
“We're experiencing a major traffic jam – we apologize for any inconvenience you're experiencing. The team is working to fix it,” Armstrong commented.
Read more: Coinbase Vs Robinhood: Which is the Best Crypto Platform?
Other exchanges, recognizing the turbulent nature of cryptocurrency markets, have taken steps to strengthen their infrastructure. In the year After experiencing multiple disruptions in 2021, according to Crypto.com CEO Chris Marszalek,
We took two years to fix and improve things.
This sentiment captures the current state of the crypto market. Many still see it as the frontier of financial technology, still going through growing pains.
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