Coinbase witnesses major downtime amid ongoing blood cryptocurrencies

Coinbase witnesses major downtime amid ongoing blood cryptocurrencies

Coinbase cryptocurrency exchange reported a major downturn amid a sharp drop in cryptocurrency prices. Stock market users complained about difficulties in withdrawing their funds that had caused a wave of panic among investors.

Coinbase said it was working on the issue and that the funds were safe. It was also added to a tweet“We are seeing a recovery after the implementation of a fix, but our teams continue to monitor the situation.” Social media platforms like Reddit have been flooded with questions about Coinbase experiencing downtime.

The main concerns concerned withdrawals as huge sums of money were stuck in Coinbase users’ accounts for a long time. However, some users have reported the problem of not being able to access the application or the website.

Coinbase users have expressed concern about the difficulty of making a “quick trade” in a sharply declining market. With Bitcoin losing almost 25% of its value and with the continuing wider market weakness, the need for fast trades and withdrawals has now increased.

Coinbase has been going through unstable times lately

Coinbase recently reported a net loss of $ 430 million in the first quarter, based on declining sales and active users. The drop in revenue is directly related to the drop in trading volume and the 19% decrease in monthly users from the fourth quarter.

The network outage came amid fears of bankruptcy that users had previously misunderstood from Coinbase’s quarterly earnings revelation. Coinbase reportedly held $ 256 billion in both fiat and cryptocurrencies on behalf of its customers.

In the event of bankruptcy the account holders will be considered unsecured creditors which translates to users losing their money in the event of the company insolvency. This part of the revelation was mentioned by the CEO of Coinbase in a series of tweets.

He said the revelation was made taking into account the requirements of the US Securities and Exchange Commission (SEC) and that the exchange platform is not at risk of bankruptcy. Users, however, have been affected by the fall in the value of Coinbase shares.

Related reading Coinbase CEO says “informal pressure” from RBI cut off our payments

Hard Wallet The Way To Go;

Shortly after the CEO of Coinbase clarified the speculation about the bankruptcy, the exchange platform experienced a shutdown. However, Twitter users have expressed skepticism about keeping money locked into a cryptocurrency exchange platform.

In the event of bankruptcy, the exchange platform is obliged to use the users’s money to be saved. This thought of losing money due to bankruptcy has caused concern throughout the encryption exchange user base.

This is when many Twitter users came up with the idea of ​​moving their cryptocurrencies to a hard wallet or a hardware wallet.

A hardware wallet will store the user’s private keys on a secure hardware device.

This will allow the owners to access their money with the help of a password or initial phrase, these wallets are a powerful feature of self-management.

The news of the shutdown came as Binance, the world’s largest cryptocurrency exchange, suspended Terraform Labs’ Terra (Luna) and TerraUSD (UST) tokens, which were reduced by 98% and exhausted the savings of many investors.

Related reading Coinbase CEO clarifies the risk of bankruptcy

Coinbase
Bitcoin was priced at $ 29,900 in the one-day chart Source: BTCUSD in TradingView
Featured image from UnSplash, chart from TradingView.com

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