Crypto News – System Glitch Hits Coinbase, Recovery Underway, Withdrawals Await Fix

System Glitch Hits Coinbase, Withdrawals Await Green Light

Crypto News- In a disruptive turn of events, Coinbase, the renowned cryptocurrency exchange standing as the world’s second-largest by trading volume, faced a significant outage on May 14.

In a recent post on X, the exchange addressed…

Coinbase Outage: Three Hours of Disruption and a Mystery to Solve

The disruption, lasting a staggering three hours, was officially acknowledged by Coinbase at 4:19 am UTC. It wasn’t until 7:34 am UTC that the exchange finally managed to fully restore its operations, as reported on its status page. Despite this apparent recovery, the exact cause behind the outage remains shrouded in mystery, with Coinbase asserting ongoing investigations into the matter.

With a daily trading volume of $2.4 billion, Coinbase holds a substantial position in the market, though it pales in comparison to the behemoth Binance, boasting an impressive $18.7 billion in trading volume, according to data from CoinMarketCap. However, the aftermath of the outage still lingers, with reports indicating that withdrawals and transfers remain inaccessible to certain users.

User Backlash: Doubts Arise Over Coinbase’s Recovery Claims

In response to Coinbase’s declaration of full system functionality, a user known only as Rocket took to social media to dispute the claim, stating, “This tweet is false as millions of people are still unable to withdraw or transfer their assets.” Echoing Rocket’s sentiment, numerous others have come forward, sharing similar grievances regarding the persistent issues with crypto transfers and cash withdrawals. Some users have even urged X’s Community Notes to verify the accuracy of Coinbase’s assertions regarding its recovery.

Coinbase’s own status page corroborates these reports, acknowledging instances of “degraded transactions” on May 14, albeit declaring resolution by 4:19 am UTC, coinciding with the end of the system-wide outage.

Centralized Exchange Woes: Trust Issues in the Crypto Community

The impact of such incidents extends far beyond inconvenience, particularly for mainstream users who often rely on centralized exchanges like Coinbase and Binance for their initial forays into the world of cryptocurrencies. These platforms offer a user-friendly interface, contrasting starkly with the complexities of decentralized exchanges (DEXs). Consequently, any disruptions in service or withdrawal issues on centralized exchanges can severely undermine trust within the broader crypto community.

The Rise of Decentralized Exchanges vs. Centralized Giants

While decentralized exchanges (DEXs) are gaining traction, their trading volumes pale in comparison to their centralized counterparts. Recent data from Kaiko Research reveals that on Monday, DEXs saw a total global trading volume of just over $585 million, a fraction of the colossal $4.6 billion amassed by centralized exchanges. As the crypto landscape evolves, ensuring the reliability and resilience of centralized exchanges remains paramount to fostering widespread adoption and trust.

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