Amid the Ongoing Crypto Bloodbath, Coinbase Suffers a Significant Outage
Coinbase stated that they were working on the problem and that all of its customers' monies were safe. "We're witnessing recovery after implementing a patch," it wrote in a tweet, "but our staff are continuing to monitor the situation." Reddit and other social media channels were swamped with questions about Coinbase's outage.
The primary source of concern was withdrawals, as large sums of money had been stuck in Coinbase consumers' accounts for an extended period. However, other users have reported being unable to use the app or website. Amid a gloomy market, Coinbase users expressed concerns about the difficulties of making a "quick deal." With Bitcoin's value plummeting by nearly 25% and broader market volatility continuing, the necessity for rapid trades and withdrawals has never been greater.
Coinbase Has Had Its Ups and Downs Lately
Coinbase recently disclosed a $430 million net loss in the first quarter, owing to a drop in sales and active users. The decrease in income is directly related to a 19 percent drop in monthly users and a drop in trading volumes in the fourth quarter. Following the fear of insolvency that consumers had misinterpreted from Coinbase's quarterly earnings presentation, the network went down. Coinbase previously stated that it owned $256 billion in fiat and digital currencies on behalf of its customers. Account-holders will be deemed unsecured creditors in the event of bankruptcy, which means that users will lose their money if the company goes bankrupt.