Coinbase, the world’s second-largest exchange by trading volume, suffered a large-scale outage on May 14.
Coinbase announced a system-wide outage lasting three hours at 4:19 AM UTC. According to its status page, the exchange was eventually fully restored by 7:34 AM (UTC).
X Exchange specified in post:
The exact cause of the service outage is not yet known, but Coinbase said it will continue to investigate the matter.
According to CoinMarketCap data, Coinbase is the second-largest exchange in the world with 24-hour trading volume of $2.4 billion, compared to market leader Binance’s $18.7 billion.
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Withdrawals and transfers are still offline for some users.
Despite announcing that Coinbase’s system is fully functional, some users continue to face technical difficulties.
User Rocket, pseudonymous X, in response to Coinbase’s announcement I left a comment.:
“This tweet is false because millions of people are still unable to withdraw or transfer their assets.”
Numerous other users also reported that their cryptocurrency transfers and cash withdrawals remained offline, and some requested a community note from X to fact-check Coinbase’s post that the system was “fully restored.”
Coinbase’s status page states that a “transaction slowdown” occurred on May 14, but that the incident was resolved as of 4:19 a.m. UTC with a system-wide outage.
Centralized cryptocurrency exchanges such as Coinbase and Binance are the first point of contact for mainstream users purchasing their first digital assets, as they typically offer a simpler user experience compared to decentralized exchanges (DEXs).
System outages and withdrawal issues on centralized exchanges could therefore be particularly damaging to mainstream trust in the cryptocurrency industry.
DEX trading volume is significantly lower compared to centralized exchanges. DEXs on Monday amassed more than $585 million in global trading volume, a tiny fraction of the $4.6 billion in volume amassed by centralized exchanges, according to Kaiko Research.
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