Coinbase users have raised concerns about inaccessible funds and account restrictions pointing over security of the and safety of their accounts.
The incident come as one of the many safety issues faced by Coinbase users in the past.
Coinbase Faces System Wide Outage
Back in February of 2024, Coinbase, one of the top cryptocurrency exchange, was looking into a “system-wide outage” that it was experiencing.
The exchange’s team was working on a solution to keep users funds secured after many raised complaints regarding the same. The incident saw many witnessing a “503 Service Temporarily Unavailable” notice displayed when visiting Coinbase’s website.
The cryptocurrency exchange previously also faced a brief technical issue in March when its trading platform malfunctioned during periods of high trading activity, displaying to some users that their account balance was $0.
During this incident, Coinbase services faced a bug causing their accounts to display a zero balance for many users. However, this was not the first time Coinbase has experienced this kind of problem. Coinbase similarly claimed that a technical glitch was the cause of the same issue that some customers had reported in August 2023.
Coinbase Not The Only Crypto Operator To Face Outage
Outages in the crypto industry have been a common occurrence for quite some time now. Just previously, On November 21, no new transaction blocks were generated on the SUI network making the blockchain unavailable for work for over two hours.
Early on August 28, a technical problem caused the Open Network (TON), the blockchain network connected to Telegram, to go offline. As a result, exchanges such as Bybit and Binance suspended deposits and withdrawals from the network during that period.
Why Are System Outages A Risk?
The crypto world is quite prone to hacking and scams. In the middle of a fear of funds getting robbed by hackers, a system outage usually brings in fear of safety for users.
Given that a system outage usually is a cumbersome experience of users, it halts activities making delays and blocked networks an issue for customers.
As UnoCrypto reported earlier, many people in the crypto world are now at risk of wallet hacks due to the expansion of the global crypto diaspora. One must take into account the different mechanisms that wallets employ in order to determine which kinds are vulnerable to hacking.
With the sophistication of crypto hackers and the rise in the number of cases, a system outage only adds to the worry of crypto holders.