Coinbase, a cryptocurrency exchange, claimed a massive outage in the midst of a crypto price crash. Users of the exchange complained about difficulties withdrawing funds, causing investors to panic.
Coinbase approach
Coinbase stated that they were working on the problem and that all of its customers’ cash was safe.
In the midst of a weak market, Coinbase users expressed concerns about the difficulties of making a “quick deal.”
With Bitcoin’s value falling by nearly 25% and broader market volatility continuing, the need for quick transactions and withdrawals has never been higher.
“We’re witnessing recovery after implementing a patch,” it wrote in a tweet, “but our staff is continuing to monitor the situation.” Reddit and other social media channels were filled with questions about Coinbase’s outage.
The main source of concern was withdrawals, as large sums of money had been stuck in Coinbase consumers’ accounts for an extended period of time.
However, other users have reported being unable to use the app or website at all.
Rough times: $430 million net loss
Due to a reduction in sales and active users, Coinbase just reported a $430 million net loss in the first quarter.
The drop in income is directly related to an In the fourth quarter, there was a 19 percent reduction in monthly users and a drop in trade volumes.
The network went down as a result of consumer fears of insolvency based on a misinterpretation of Coinbase’s quarterly results presentation.
Coinbase previously stated that it owned $256 billion in fiat and digital currencies on behalf of its customers.
Transferring cryptocurrencies to a hard wallet
The exchange platform had an outage not long after Coinbase’s CEO confirmed the bankruptcy rumors. However, some Twitter users have expressed reservations about holding money on a crypto exchange site.
In the event that the exchange platform goes bankrupt, the users’ money will be used to bail them out.
The prospect of losing money due to bankruptcy has caused anxiety among the crypto exchange’s users.
Many Twitter users have suggested putting their cryptocurrencies into a hard wallet or hardware wallet at this time.
The user’s private keys will be stored in a secure hardware device with a hardware wallet.
These wallets are a powerful component of self custody since they allow owners to access their cash using a password or seed phrase.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/05/15/coinbase-claimed-a-massive-outage-in-the-midst-of-a-crypto-price-crash-users-are-facing-these-problems/