Coinbase, a crypto exchange in the United States, is grappling with a significant system-wide outage. This outage has rendered Coinbase’s services inaccessible to users on both desktop and mobile platforms.
The exchange officially announced the outage on its status page at 4:15 am UTC on May 14. Their announcement alerted users to a “major outage” impacting the system.
When attempting to visit the Coinbase website, users are greeted with a “503 Service Temporarily Unavailable” error message. This error commonly indicates that the servers are either undergoing maintenance or experiencing an overload of traffic.
Coinbase Support acknowledged the issue on social media platforms. Their official channels assured users that they are actively investigating and working diligently to find a solution. Additionally, they reiterated that users’ funds remain safe and secure despite the ongoing disruption.
This is not the first time Coinbase has encountered temporary outages. On February 28th of this year, Coinbase and several other notable exchanges experienced service disruptions due to a significant surge in cryptocurrency trading activity. While such outages can undoubtedly be frustrating for users, some individuals within the cryptocurrency community often view these incidents as a bullish sign, suggesting that the heightened activity causing the downtime ultimately benefits the overall market price.
Coinbase Faces Regulatory and Technical Challenges Amidst Outage
Currently, Coinbase has not specified the exact duration of the outage or provided insight into the underlying cause. However, the company is expected to provide regular updates as it works to resolve the issue and restore full functionality to its platform.
Interestingly, investment banking company KBW praised Coinbase last month for providing investors with a one-of-a-kind opportunity to capitalize on the crypto economy’s long-term development prospects. As a result, they raised their price target for Coinbase’s stock (COIN) from $160 to $230 while maintaining their “market performance” rating.
However, Coinbase’s recent success has not been without its fair share of regulatory hurdles. Last month, Judge Katherine Polk Failla of the US District Court for the Southern District of New York ruled that the SEC’s lawsuit against Coinbase can proceed. This decision came after Coinbase filed a motion to dismiss the SEC case, which borders on allegations that the exchange operates as an unregistered securities exchange, broker, and clearing agency.
In her ruling, Judge Failla declared that the SEC’s lawsuit against Coinbase held “plausible” ground, stating, “The Court finds the SEC has sufficiently pleaded that Coinbase operates as an exchange, as a broker, and as a clearing agency under the federal securities laws, and through its Staking Program engages in the unregistered offer and sale of securities.”
As the outage continues, Coinbase users and industry observers alike will be eagerly awaiting updates from the exchange as they work to resolve this significant disruption.
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