Cryptocurrency exchange Coinbase is stabilizing its platform after a technical error caused customer balances to show as $0.
The company’s CEO, Brain Armstrong, said the glitch was caused by excessive traffic load. explained At Social Media Platform .Removes any remaining bottlenecks. Thank you for your understanding.”
Although site performance continues to decline at Coinbase, the company said in a status report at 3:15 PM ET, “Customer transactions continue to improve on the platform. Customer logins have recovered and transfers are improving intermittently due to continued traffic growth. “Some customers may still experience errors with reception and some payment methods.”
The exchange said this morning that it was aware of a glitch in which customer balances were displayed as $0, causing an asset sale issue, and added that customer assets were safe. The Block confirmed a technical error in the Coinbase app.
Coinbase’s heavy traffic led to millions of liquidations at the same time Bitcoin’s price surged near $64,000, The Block previously reported. The last time the token topped $60,000 was in October 2021.
institutional storage
Many institutional issuers of spot Bitcoin ETFs, such as BlackRock and Grayscale Investments, have chosen Coinbase as their cryptocurrency custodian. However, Nate Geraci, president of investment advisor The ETF Store, told The Block that spot Bitcoin ETF issuers were not affected.
“There are no apparent issues with Coinbase’s institutional custody solution, so spot Bitcoin ETFs are unlikely to be impacted,” Geraci said. “I expect issuers of spot Bitcoin ETFs that rely solely on Coinbase to work to diversify their custodial relationships, but I don’t think today’s events are any kind of catalyst for that. I think using multiple custodians is always a good idea. “I believe that’s the goal.”
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