Who is Accountable? Coinbase Glitch Causes $100 Billion in Losses
As the crypto market speeds up, there is no doubt that excitement is as well. However, alongside this growth, comes a worrying trend of recent glitches, which have been having significant consequences on market dynamics. But ultimately, the question remains: who should be held accountable?
On February 29, Bitcoin traders have experienced an extremely huge loss of approximately $100 billion in just minutes due to a recent glitch on the popular U.S.-based exchange Coinbase.
This glitch occurred as Bitcoin surged past the $64,000 mark, sparking immense excitement in the financial market.
The surge in activity overwhelmed Coinbase’s trading platform, causing significant disruptions. Users were unable to view the actual values of their assets, which lead to widespread panic within the crypto community.
As a result of the outages, Bitcoin’s value plummeted from its peak of $64,300 to around $59,461 within an hour. Analysts estimated the loss in market capitalization to be around $100 billion during this brief period, however, the number is yet to be confirmed.
Prominent figures within the crypto community, such as Martin Hiesboeck from Uphold, criticized Coinbase, emphasizing that the exchange must explain what happened. He commented, “Coinbase has a lot to answer.”
Coinbase acknowledged the situation, stating, “We are aware that some users may see a zero balance across their accounts and may experience errors in buying or selling.” The exchange assured users that their assets remained secure and unaffected.
Coinbase promptly initiated an investigation into the matter and committed to providing updates as necessary. Subsequently, the exchange announced that all display issues regarding users’ account balances had been resolved.
The exchange also advised users to monitor the status of the outage through its status page. Despite ongoing improvements in customer trading, some users continued to experience errors due to increased traffic on the platform.
While the Coinbase outage temporarily challenged Bitcoin’s attempt to surpass its 2021 all-time high, the cryptocurrency has since made significant strides in recovery, currently trading at $62,176.
It’s evident that Coinbase must take swift action to justify this significant issue. Simultaneously, it’s imperative to conduct a thorough investigation to understand the root cause of the problem and implement measures to prevent its recurrence.
The repeated occurrence of such disruptions not only undermines investor confidence but also poses a big barrier to newcomers considering entry into the market.
As the cryptocurrency market grows by the day, maintaining reliability and trustworthiness becomes increasingly critical for sustaining growth and fostering investor participation.
