The Coinbase ecosystem seems to be reacting negatively to the same Bitcoin rally that has investors beaming with joy.
Another Coinbase Glitch on Record
Coinbase, the American cryptocurrency exchange is recording another outage as Bitcoin hits a new all-time-high (ATH). This is about the third Coinbase outage within the last two weeks. Coinbase users reported a widespread disruption as the network went offline. According to data from Downdetector, there has been a bulk of problem reports submitted in the past 24 hours.
Crypto commentator MartyParty reiterated the news of the outage on X, highlighting that the exchange has constantly chosen to use inferior tooling and technologies that are fragile to high volume. He also believes that Coinbase’s technical leadership has constantly made poor choices. MartyParty says that a total rewrite with more scalable technologies would be the only remedy for the company.
Two weeks ago, Coinbase faced a technical glitch after a surge in Bitcoin prices resulted in huge demand. Users were seeing zero balance on their Coinbase account but the exchange claimed to resolve the issue after investigating the source of the glitch. It was later reported that a staggering $100 billion loss in Bitcoin market capitalization was lost within 15 minutes due to the outage.
At this time, Bitcoin had only risen to $60,000. It was perceived that the heavy volume and intense traffic due to the surge in the price of Bitcoin was the reason for the outage on the application.
Is The Coinbase Outage Intentional?
Per the two weeks ago outage, Coinbase claimed to be making an effort to sort the glitch while acknowledging that it was “beginning to see improvements in customer trading” though because of increased traffic, “some customers may still see login errors, sends, receives and with some payment methods.”
Shortly after, there was a recurrence which was likened to a display problem. There was also the issue of increased latency on the platform. Coinbase claimed that customers’ funds were safely tucked away and remained unaffected by the outages. However, the multiple recurrence of the Coinbase outage is becoming a major concern to its users across the globe.
Notably, some crypto X members think that the frequent outage may be an intentional action from Coinbase to keep Bitcoin from ripping through ATH. The consensus on Crypto X is that a permanent solution needs to be administered, urgently.