A major outage at Coinbase is being reported in the middle of the ongoing crypto bloodbath
Coinbase claimed a massive outage in the midst of the crypto market’s dramatic decline. Investors’ concern was stoked when the exchange’s users reported problems withdrawing their money.
When asked about the problem, Coinbase claimed they were looking into it and assured customers that their money was secure. Also tweeted, “We’ve implemented a patch and are seeing recovery, but our staff are still monitoring the issue.” Reddit and other social media sites were swamped with inquiries about the Coinbase outage.
Coinbase consumers had a lot of money sitting in their wallets for a long period, and withdrawals were a major worry. Not everyone was able to get onto the app or the website, as some claimed.
During a gloomy market, Coinbase customers voiced worries about the difficulties of making a “quick deal.” With Bitcoin’s value down by about 25% and the larger market continuing to weaken, the need for fast transactions and withdrawals has increased.
According to Coinbase’s first-quarter losses of $430 million, the company’s revenues and active users have decreased. In the fourth quarter, trade volumes dropped by 19 percent, and monthly users fell by 19 percent, both of which contributed to a decrease in income.
Coinbase’s quarterly earnings presentation sparked panic among consumers who misunderstood the company’s financial status. For its users, the Coinbase platform had said that it had a total of $256 billion in both fiat currency and cryptocurrency.
Account-holders will be deemed unsecured creditors in the event of bankruptcy, which means that users would lose their money if the firm goes bankrupt. It was addressed by Coinbase CEO Brian Armstrong in a series of tweets.
There is no chance of the exchange platform going bankrupt, according to the statement, which was made in accordance with the SEC’s rules. In addition, Coinbase’s stock value has fallen, which has hurt users as well.
After Coinbase’s CEO addressed the bankruptcy rumours, the exchange platform went down. Despite these concerns, a few Twitter users said that they were reluctant to keep their money in a crypto exchange.
When a currency exchange site goes bankrupt, the user’s money is at risk. The fear of going bankrupt has sent shivers through the crypto exchange’s user base.
The concept of shifting cryptocurrency to a hard wallet or hardware wallet has been brought up by several Twitter users during this time period. The user’s private keys will be stored in a secure hardware device using a hardware wallet.
These wallets are a significant element of self-custody since they enable owners to have access to their cash using a password or seed phrase.
There has been a widespread outage of Terraform Lab’s Terra and TerraUSD tokens, which have lost 98 percent of their value after Binance, the biggest cryptocurrency market in the world, said it was suspending the tokens.