Coinbase Resumes Normal Operations Following Major Outage

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Key Takeaways

  • Coinbase resolves a three-hour system outage that restricted user access and impacted trading on their platform.
  • The outage affected the website and app, displaying a "503 Service Temporarily Unavailable" error, with ongoing issues in crypto transfers and withdrawals post-resolution.
  • Coinciding with the outage, there was a slight drop in cryptocurrency values and Coinbase's stock, although the exact impact of the outage on these declines remains speculative.

Major cryptocurrency exchange Coinbase successfully resolved a three-hour system outage that prevented users from accessing their accounts.

The company announced the resolution of the incident via an update on its website. Before this, Coinbase had notified users of the interruption and assured them of the security of their funds.

Coinbase Outage Leads to Halted Withdrawals

Coinbase did not disclose the primary cause of the outage, but it promised to conduct a thorough investigation to identify the root cause and prevent similar incidents.

The Coinbase outage began at 4:19 a.m. UTC and affected both the exchange’s website and mobile app, halting users’ trading activities.

As a result, all attempts to visit the Coinbase website during that period displayed a “503 Service Temporarily Unavailable” error message, which is a common error message for overloaded servers.

The outage was a major disruption to Coinbase’s operations. The exchange is the world’s second-largest trading platform, with a 24-hour trading volume of $2.4 billion.

Despite assurances that user funds were safe, many users reported ongoing technical difficulties, particularly with crypto transfers and cash withdrawals, despite Coinbase’s announcement that the system was fully operational.

Pseudonymous X user Rocket commented that Coinbase outage resolution was false “as millions of people are still unable to withdraw or transfer their assets.”

In response, the Coinbase support team acknowledged the ongoing issues and worked diligently to resolve withdrawals and cryptocurrency transfer problems.

However, they did not provide a specific timeline for when the issues would be fully resolved.

Coinbase Outage Occurs Amid Crypto Ruffle and Stock Decline

Interestingly, Coinbase’s outage coincided with a slight downturn in cryptocurrency prices.

ETH market Price Dipped After Coinbase Outage | Source: Coinmarketcap
ETH market Price Dipped After Coinbase Outage | Source: Coinmarketcap

Bitcoin was trading at $62,000 before the Coinbase interruption disclosure. Following the announcement, its price dipped to $61,600. Similarly, Ether, the second-largest cryptocurrency, experienced a 1.4% decline, trading at $2,913.

COIN shares are down | Source: Coinmarketcap
COIN shares are down | Source: Coinmarketcap

Coinbase shares (COIN) also experienced a downtrend in the early hours of May 14. While there are speculations that the exchange interruption was a major driver of this trend, the actual cause is yet to be determined.