When Bitcoin goes parabolic, and its trading volume registers all-time highs at $45.9 billion per day, we expect cryptocurrency exchanges to be ready to handle the new demand, especially top exchanges. Nonetheless, Coinbase failed to do so as it went offline just as Bitcoin started dropping from near $14,000 to $11,500.
The “degraded performance” was initially investigated at 21:47 (London time), 15 minutes after Bitcoin dropped $1,940+ in a matter of minutes. Coinbase later announced that the issue had been resolved at 22:38 (London time) as Bitcoin was recovering to $12,500.
Although the issue was resolved in under an hour, top exchanges should perform adequately during volatile times, as these are expected in this young market. It is not unreasonable to assume that some traders/investors would have sold the beginning of the fall or bought the dip, and Coinbase’s outage could have prevented them from profiting from such a move.
Yesterday’s Coinbase degraded performance was not the first one of the week, not even the second, but it was the most noticed because of Bitcoin’s price action. The first one occurred on the 24th of June and was not noted as degraded performance but as “Coinbase.com down”. The second one took place the day after as another issue surfaced on the exchange.
In summary, Coinbase has been struggling with keeping their performance and exchange running up to standards for the past three days, we hope these will no longer occur as the exchange fixes them once and for all.
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