Topic: Coinbase down again during crash, is the exchange doing this on purpose? (Read 621 times)

Rather, they've been making a lot of mistakes lately. That's their main problem.

Once again, Coinbase got down. This time it was caused by Ripple price growth.

First noticed it on twitter few hours ago. But now Coinbase seems to be working again. They must do something with their servers. Either update them or change their IT support team, because every time top altcoins and bitcoin start they fly to the moon, Coinbase servers crashes...

I think they don't want their servers crashed. Also, big influx of buyers/sellers just is more headache to them.

Here's a post from a Coinbase engineer about the outage - https://blog.coinbase.com/incident-post-mortem-april-29-and-may-9-2020-56494decab9f

It sounds like a system that wasn't used all that often did not do the job when called upon. Looks like they're going to fiddle and improve it.

After reading this news, i moved my coins from coin base to my personal wallet. I did not say that coinbase can scam but we should be careful. Although there are certain times where coin base goes down due to maintenance or outages but it always come back online. Just to be on the safe side, remove your extra funds from online exchanges.

I am not an expert nor a Good in exchange operation but this same issue comes in our local exchange everytime the Market experienced Big changes.

Just like recently that they announced a maintenance in May 11 but since the market moves Up in May 9 they suddenly declared emergency maintenance.

This happens many times before specially when there is a Bullrun happening and very rare when Bearish comes ,i don't know whats happening but for me?there is something that they intentionally prevent people to trade in a certain period of time.

It's a perfectly good explanation that Coinbase is not being able to handle the number of transactions people are making during sudden price changes, and this triggers the outage events. Perhaps that's not it, and Coinbase is doing it on purpose, but I don't see why it would (if the price is going down, one might think they don't want to lose money people entrust them with, but if the price is going up, it just makes no sense). And we don't see the whole picture. Maybe making sure that the outages don't occur is too expensive or risky in some ways, so Coinbase chooses not to do anything.

Have you tried Swapzone?

But they should have already find the solution for this problem as it was not the first time to happen. When it first happened, they should have identified the solution or were they confident about their system? If it will happen again in the future, I don't think it will be good on their image.

I do not really think it it Coinbase causing there own exchange to go down in peak hours because the fee loss and bad look it gives them.
Unless you think they are doing big shorts and manipulating the price but I doubt that.

I would say its more likely that other 3rd party people with the means to put more strain on Coinbase when they want to make it drop are doing it.

I don't think this issue is only about Coinbase. All major exchanges, including Binance, experience similar problems after the frequency of orders entered and canceled during sudden price movements.

I doubt they're doing so on purpose most especially as they stand to benefit more each time there's an increase numbers of traffic on their site as a result of either people selling or buying bitcoin in their numbers. The funds this traffic will generate as a result of fees charge by the exchange is just something an exchange like coinbase won't want to miss.

And assuming this is discovered to be a foul play by the exchange, it will definitely ruins their reputation which I'm quite sure coinbase won't want to risk that happening. A big exchange like coinbase though should have been able to tackle this issue but don't get why that's not the case.

Issue like this experience repeatedly by other so called reputed top exchanges is why we have to give credit to Binance for been ahead of the games. Assuming such issue was experience by Binance, they would had done sometime immediately to prevent the site from experiencing similar issues.

I also noticed that coinbase during the dumps and pumps crashed the system, initially I thought it was done on purpose by coinbase itself, but in my opinion btc every day finds new investors and with the increase of users who place orders during the pumps or dump leads to a blockage of the system APIs. personal opinion of course

Still, any exchange should never crash whenever there's an influx of users trying to trade on their platform. Being paranoid is not good but you should not trust them too much. We don't know what's happening under the hood after all. On top of that, it's perfectly understandable if people start throwing accusations when the same thing happened multiple times without any real fix (at least a fix people can enjoy).

Mainwhile I've checked coinbase and right now it seems everything is fine. Running good. I have been using coinbase since 5 years. I notice not only coinbase but also others exchanges crashe when there is a big increase or decrease of bitcoin price. Maybe because of their hosting unable to control a lots of traffic during that incidents. So don't think coinbase has done this outages on purpose

When similar spikes in trading activity do not cause the same result it would appear to be due to foul play on the part of coin base but big surges do happen.

If this was the case, delaying  a major exchanges user base from selling gives them a large advantage to liquidate assets prior to

Until the ubiquitous smoking gun arrives the conspiracy theories will live on!

Happy halving! BTC

Coinbase exchanges don't do this on purpose, because it is not profitable for coinbase to do so. The existing coinbase reputation can be bad
if they do that, in my opinion this is just a technical problem. Coinbase should upgrade their system immediately. If the system is not fixed
immediately, the coinbase can be left by its users. Because now many exchanges that offer good service and of course with a good system
as well, so make users comfortable.

Completely insignificant. If Coinbase goes down for an hour now and then, there are still 8,700+ other hours in the year for them to earn profit. The amount of money they lose from being down for an hour is utterly insignificant to their $2 billion a year turnover. It will also pale in comparison to the amount of money they can make by insider trading and dumping on their customers while their exchange is "down", if that is indeed what they are doing. Further, the majority of people who are storing their money on Coinbase and want to trade when the price starts moving rapidly are still going to want to trade when the exchange comes back up.

A decentralized network, but a centralized exchange. When you use a centralized exchange you play by their rules and there is nothing you can do about it.

It took them how many years to support SegWit? It took them how many years to finally batch their transactions? If this is indeed unintentional, then it will continue to happen for years before they finally get it fixed.

Insider trading is absolutely against the law. As gentlemand pointed out above, luckily Coinbase found themselves innocent in their own investigation in to themselves.

Coin base has 5.6 million users , in January 2018 it had 11.1 million users .
Now the site is incapable of handling high amount of users at once. One needs to understand that at times like this where one can expect high amount of traffic the website needs to be upgraded to support it . Plus everyone knew halving is a historic event and therefore it should have been done before.
The downtime on the websites does cost them themselves therefore making it even worse for most websites , so if coin base would do this on purpose the chances are they are loosing a good amount of money too.
But if they were paid correctly by some big whale to do that then the chances are they did not upgrade their website and what they were paid was Preety big amount.
See it is a decentralized network but still it does not stop people from playing dirty.
But at the same time I do doubt that coinbase would actually repeat their mistakes again and again . After 2018 they should have already upgraded the site plus prevented the clustering of users so that they can all use the website efficiently.
I think my take on it would be :
They are doing it on purpose.
But then again what they are doing is not against any rules. Therefore there cannot be any action taken against them , even if people go to the court they would be advised to just leave and use another exchange.

Coinbase really should have contingencies by now for this kind of problem.
Considering the huge amount they are dealing everyday, they should have anticipated that this will happen again and again.
And should have looked a sustainable solution to address this problem.
What will be the impression of their clients if this will continue to happen in the future?