Coinbase recovers services following two-hour system wide outage

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As a seasoned financial analyst with extensive experience in the cryptocurrency market, I’ve witnessed firsthand the volatility and complexity of this emerging asset class. The recent incident involving Coinbase, a leading US-based cryptocurrency exchange, is particularly noteworthy due to its potential implications for investors and traders.

Coinbase, the cryptocurrency exchange, announced through a post on its forum that certain functionalities have been reactivated after an interruption caused by an outage affected trading on both their website and mobile application.

On May 14, in a post on their X platform, the American cryptocurrency exchange Coinbase announced that they had managed to restore some of their services, although users might still be experiencing connectivity issues. This update followed the exchange’s earlier announcement of a “system-wide outage” and their promise to customers that an investigation into the problem was underway.

Some services are gradually coming back online. We understand that some customers might be experiencing connection issues, and we ask for your understanding as we work diligently to resolve these problems. We remain vigilant and continue to closely monitor the situation.

— Coinbase Support (@CoinbaseSupport) May 14, 2024

As an analyst, I’d rephrase it as follows: On May 13, approximately at 21:19 PDT, I observed that Coinbase encountered an issue. In a message posted on their status page, they mentioned some users might experience difficulties transferring funds without providing further details.

Currently, Coinbase’s status report indicates that the issue has been remedied, but it’s uncertain what caused the two-hour long interruption, which is typical for centralized cryptocurrency exchanges, often due to market volatility or intense blockchain network congestion.

According to my analysis of Bloomberg’s report, I came across an instance where Coinbase experienced technical glitches in March, leading some users to see a false reading of a zero balance on their accounts. Notably, this occurrence took place right before Bitcoin surged to new heights in the market.

As an analyst examining the current market situation, I’ve noticed that recent events seem connected to a technical problem on the cryptocurrency exchange’s backend. Based on data from CoinGecko, Bitcoin (BTC) and Ethereum (ETH) have exhibited minimal price changes over the last 24 hours, with Bitcoin experiencing a slight increase of 0.31%, while Ethereum underwent a decrease of 0.44%.

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2024-05-14 11:10