The recent surge in Bitcoin’s price, soaring above $60,000, has caused technical difficulties for Coinbase, a prominent cryptocurrency trading platform. Users of the Coinbase app reported witnessing a zero balance in their accounts, prompting widespread concern and confusion. This issue was attributed to a glitch within the app, occurring simultaneously with a significant spike in demand for Bitcoin and other cryptocurrencies. Coinbase acknowledged the problem on February 28, 2024, assuring users that their assets were secure and that they were actively investigating the issue.
Coinbase CEO Brian Armstrong attributed the outage to a “large surge of traffic” overwhelming the exchange’s infrastructure. This influx of traffic and interest in cryptocurrency trading likely stemmed from the recent approval of U.S. spot Bitcoin ETFs and anticipation of Bitcoin’s halving event in April, historically associated with increased cryptocurrency investment. The technical glitch not only displayed zero balances in user accounts but also resulted in errors in buying or selling, along with significant delays in transferring funds over the Ethereum ERC-20 network.
The incident has sparked outrage among crypto enthusiasts on social media, with many expressing frustration over their inability to access funds or execute trades during a critical market period. Despite the initial panic, Coinbase repeatedly assured its users that their assets were secure and that they were diligently working to resolve the issue.
This event highlights the challenges cryptocurrency exchanges face in managing surges in traffic and trading activity, particularly during periods of significant market volatility. It underscores the importance of robust technical infrastructure and customer support to promptly address and mitigate the impact of such issues. As of the latest updates, Coinbase has begun to see improvements in customer trading, although some users may still encounter errors due to ongoing high traffic levels on the platform.
