In the past three months Coinbase has gone offline four times, always in conjunction with large swings by Bitcoin (BTC). Enraged users, unable to access their account during the most critical periods, require answers from the company.
On June 1st, when Bitcoin’s price went from $ 9,600 to $ 10,380 in less than an hour, Coinbase users who attempted to access the platform were greeted by the following message:
On May 9, two days before the highly anticipated halving, Bitcoin’s price suddenly dropped by nearly $ 2,000, probably due to sales by whales and large investors; on April 29, Bitcoin grew 12% to reach $ 8,600. On both occasions, Coinbase was found to be inaccessible.
A problem that also occurred in mid-March, when users of the platform were unable to sell their coins despite the price having more than halved.
Coinbase offline just when users need it most
Coinbase therefore appears unstable in moments of maximum volatility of Bitcoin. Unfortunately, the large price swings, both positive and negative, are precisely the moment when traders most want to buy or sell.
On its website, the company claims that the platform faced “connectivity problems“on June 1st, May 9th and April 29th. On March 12th, the difficulties were related to”network congestion“.
Neither Brian Armstrong, CEO of Coinbase, nor other company representatives have made any official statements on the matter. However, the cryptocurrency community did not hesitate to harshly criticize the company.
The reaction of the community
On Twitter, the CryptoWhale user he speculated that on Coinbase there is an algorithm that automatically deactivates the service as soon as the Bitcoin price increases or decreases rapidly by over $ 500.
Dan Gambardello of Crypto Capital Venture he simply asked:
“How is it possible for an exchange with a valuation of 8 billion dollars to crash whenever the price of Bitcoin increases by 5%?”
It is quite normal for cryptocurrency exchanges, even for the most important and renowned ones such as BitMEX, to slow down during periods of maximum activity.
However, Coinbase’s ongoing crashes are starting to dent the company’s reputation among community members: the platform had gone offline in June 2019 as well, causing the Bitcoin price to drop by $ 1,400.