Coinbase down again during crash, is the exchange doing this on purpose?

[seandiumx20]

It's the same with our local exchange, being down when there's a huge opportunity to take. I don't want to be pessimistic but it always happen so maybe some exchanges are doing it in purpose. Business will be always a business, it will never change and will always take the maximum of that opportunity than its users. People can't do anything about it so better choose other exchanges that don't crash when changes happening in market.

[o_e_l_e_o]

Why would anyone trade there if it goes down every time there is some volatility?

Name recognition and resistance to change. They are one of the largest and most well known exchanges, and so a lot of people will pick them as their first exchange without doing that much research. Once you've gone through the effort of creating a new account, enabling 2FA, completing all the ridiculous KYC, scanning your documents, answering their questions, waiting days or weeks to become verified, linking to your bank account or credit cards, etc., then a lot of people will opt to put up with sub-optimal conditions rather than switching to a new provider. Certainly if you are concerned about your KYC documents (as everyone should be), then once you've completed KYC at one exchange you are going to be in no hurry to complete it any more.

The fact they keeping "crashing" when the bitcoin price moves is only a tiny propotion of all the shady or objectionable things Coinbase have done over the years, from spamming the network with non-batched transactions for years and listing trash coins their investors wanted to dump on their users, all the way through to partnering with a company who produce and sell surveillance technology to human rights abusing dictators.

[thesmallgod]

probably because of congestion and traffic overload. It is bitcoin season and even people who know little about crypto will come in to buy and this might be the reason. coinbase will make alot of money from fee so I do not see reason why they will intentionally do this. Even the CZ binance also make mention about getting binance server prepared when a whale alert was received. you can check his twitter handle for this.

[Baofeng]

They have a history of crashes when BTC goes down or up, but by this time, they should have adjust their servers to the volume. But why is it still happening? probably it is being rig by someone inside and they don't want people buying the dip, LOL.

[COBRAS]

They have a history of crashes when BTC goes down or up, but by this time, they should have adjust their servers to the volume. But why is it still happening? probably it is being rig by someone inside and they don't want people buying the dip, LOL.

Be careful. This may be fake coinbase sate you login.

[Astargath]

Why would anyone trade there if it goes down every time there is some volatility?

Name recognition and resistance to change. They are one of the largest and most well known exchanges, and so a lot of people will pick them as their first exchange without doing that much research. Once you've gone through the effort of creating a new account, enabling 2FA, completing all the ridiculous KYC, scanning your documents, answering their questions, waiting days or weeks to become verified, linking to your bank account or credit cards, etc., then a lot of people will opt to put up with sub-optimal conditions rather than switching to a new provider. Certainly if you are concerned about your KYC documents (as everyone should be), then once you've completed KYC at one exchange you are going to be in no hurry to complete it any more.

The fact they keeping "crashing" when the bitcoin price moves is only a tiny propotion of all the shady or objectionable things Coinbase have done over the years, from spamming the network with non-batched transactions for years and listing trash coins their investors wanted to dump on their users, all the way through to partnering with a company who produce and sell surveillance technology to human rights abusing dictators.

Exactly, it's not like it's a surprise either, Bitcoin will do 5-10% moves in minutes, that's how it is and everyone knows it. If you can't fix that after 3 years, then you are either incompetent or doing it on purpose.

[kemoglo]

Theoretically possible for whatever agenda, but I don't think it is. In my opinion, intentional outages for whatever agenda is a lot more likely to happen when talking about leverage trading exchanges like BitMEX as outages can wreck out people's shorts/longs when huge price movements occur. Why would they do it? Idunno.

This whole dump was orchestrated to wreck longs. There were some comments on trading channels where people who do this for a living couldn't even set a position in time before it was all over. One guy said he went away for a few minutes to make some tea and when he was back it was all over. It doesn't happen that fast unless it's set by bots or the exchanges itself.
That's why I stay away from trading. This game is rigged.

Even if it's not and Coinbase has nothing to do with it, it's ridiculous that such a big exchange still has this problem after years. Why would anyone trade there if it goes down every time there is some volatility? Bitcoin is VOLATILITY, the exchange is basically going to be down 50% of the time.

I find it interesting that the couple exchanges I'm close with have presented a huge influx of new users. Compared to last month at least, seems that these last couple of days people have been registering en masse. It's possible coinbase saw a similar behavior and wasn't prepared for it, heck, it's funny to type that out. "Coinbase wasnt prepared for it"

[TimeTeller]

Theoretically possible for whatever agenda, but I don't think it is. In my opinion, intentional outages for whatever agenda is a lot more likely to happen when talking about leverage trading exchanges like BitMEX as outages can wreck out people's shorts/longs when huge price movements occur. Why would they do it? Idunno.

This whole dump was orchestrated to wreck longs. There were some comments on trading channels where people who do this for a living couldn't even set a position in time before it was all over. One guy said he went away for a few minutes to make some tea and when he was back it was all over. It doesn't happen that fast unless it's set by bots or the exchanges itself.
That's why I stay away from trading. This game is rigged.

Even if it's not and Coinbase has nothing to do with it, it's ridiculous that such a big exchange still has this problem after years. Why would anyone trade there if it goes down every time there is some volatility? Bitcoin is VOLATILITY, the exchange is basically going to be down 50% of the time.

I find it interesting that the couple exchanges I'm close with have presented a huge influx of new users. Compared to last month at least, seems that these last couple of days people have been registering en masse. It's possible coinbase saw a similar behavior and wasn't prepared for it, heck, it's funny to type that out. "Coinbase wasnt prepared for it"

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?

[fiulpro]

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.

[o_e_l_e_o]

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.

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.

See it is a decentralized network but still it does not stop people from playing dirty.

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.

After 2018 they should have already upgraded the site plus prevented the clustering of users so that they can all use the website efficiently.

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.

But then again what they are doing is not against any rules.

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

[MCobian]

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.

[CryptoCa$hSieb]

https://www.coincurb.com/news/bitcoin-break-to-8000-broke-coinbase-which-experienced-partial-outage-again/

It seems that Coinbase has been dealing with this issue for years now and it's quite surprising to see the platform hasn't been able to fix it. Is there a possibility for the exchange to be allowing or conducting these 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

[Mehedi72]

https://www.coincurb.com/news/bitcoin-break-to-8000-broke-coinbase-which-experienced-partial-outage-again/

It seems that Coinbase has been dealing with this issue for years now and it's quite surprising to see the platform hasn't been able to fix it. Is there a possibility for the exchange to be allowing or conducting these outages on purpose?

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

[joniboini]

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

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).

[giammangiato]

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

[CryptopreneurBrainboss]

It seems that Coinbase has been dealing with this issue for years now and it's quite surprising to see the platform hasn't been able to fix it. Is there a possibility for the exchange to be allowing or conducting these outages on purpose?

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.

[Nadziratel]

https://www.coincurb.com/news/bitcoin-break-to-8000-broke-coinbase-which-experienced-partial-outage-again/

It seems that Coinbase has been dealing with this issue for years now and it's quite surprising to see the platform hasn't been able to fix it. Is there a possibility for the exchange to be allowing or conducting these outages on purpose?

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.

[Rune]

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.

[Twinkledoe]

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.

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.

[Swapzone]

Have you tried Swapzone?