Coinbase has suffered several interruptions since March, often coinciding with volatile Bitcoin trading days.
Coinbase seems to be experiencing a crisis in its capacity. As users have pointed out for years, when Bitcoin Legacy and other cryptoactives become especially volatile, the exchange drops without notice. These interruptions can prevent customers from buying or selling their assets and are usually viewed unfavorably by traders.
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Between March and November, the exchange recorded nine different problems, leading to various types of interruptions or connectivity problems, although the direct impact on customers is not yet measurable. The problems vary in severity. The status update posted by Coinbase said, „Coinbase.com is experiencing connectivity problems.
Four of these occurrences coincided with the volatile price action of Bitcoin, according to TradingView.com’s 30 minute price candles.
On April 29th, Coinbase reported connectivity issues. In a later update, Coinbase.com claimed to have experienced problems between 10:00 and 12:30 PDT that day. The price of Bitcoin changed 4.54% during that time. Cointelegraph also published about the platform difficulties that day.
On May 9th, Coinbase notified customers of another difficulty, publishing again: „Coinbase.com is facing connectivity problems“. This time, the price of Bitcoin changed 15.26% between 17h and 18h PDT – period in which the exchange was off the air, and details were only published several days later.
It’s a coincidence that every time we have great market movements, @coinbase falls? That @SEC_Enforcement seriously investigates this. We need some transparency.
– Alex Cobb (@AlexCobb_) May 10, 2020
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The third case triggered by a major Bitcoin price action happened on June 1st, when Coinbase once again warned the public about connectivity problems. The incident impacted users between 4pm and 5pm PDT, a period during which Bitcoin moved 6.94% in price. In the days following this particular incident, some Coinbase customers left the platform, as demonstrated by the Bitcoin withdrawals on June 9th.
Coinbase also suffered another connectivity problem on July 28th between 2h and 4h30 PDT, during which Bitcoin moved 3.82% in the price.
However, not all of Coinbase’s problems coincided with BTC’s price fluctuation days. Coinbase notified the public about the problems on November 16, stating: „The site and mobile applications do not load“. Bitcoin changed only about 1.72% in price during the period of the problems, although it was enough to cause more indignation among traders. Connectivity problems also occurred on May 28th, July 17th, August 18th and November 11th, during which Bitcoin moved less than 3% in price during each incident.
Coinbase fell again. Therefore, I strongly encourage everyone to leave Coinbase.
They had years and endless resources to prepare for it. For me, it’s not by chance that these things happen, and it’s very dark.