Coinbase Revealed the Reason Behind Its Crash, During Bitcoin Price Upsurge

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Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • Recently, the team of leading global crypto exchange Coinbase has published a report describing the technical issues faced by the exchange on June 1, 2020.
  • Just a few days back, on June 1, 2020, the price of Bitcoin upsurged to $10,000 per bitcoin.
  • However, this large spike and subsequent decline have offered trading opportunities for crypto traders.

Recently, the team of leading global crypto exchange Coinbase has published a report describing the technical issues faced by the exchange on 1st June, 2020, amid bitcoin price surge.

Bitcoin Sudden Price Spike

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Just a few days back, on June 1, 2020, the Bitcoin price upsurged to $10,000 per bitcoin. However, this large spike and subsequent decline have offered trading opportunities for crypto traders. While at the same time the users of a Coinbase exchange experienced some technical issues.

Several media reported that Coinbase exchange was offline for about an hour. While, as per Coinbase’s official website, the connectivity issue lasted from 16:14 – 16:58 PDT.

According to the exchange, at 16:05, the price of Bitcoin peaked at $10,000. With regard to the increasing price, the exchange experienced the highest of traffic, 5x, over 4 minutes.  Due to this, the autoscaling couldn’t stay up with this sudden increase in traffic.

A Dramatic Increase In Coinbase Traffic

Moreover, this traffic spike severely affected the exchange’s several internal services, leading to increased latency between services.

This led to the process immersion of the web servers that are responsible for the exchange’s API. The number of incoming requests was more than the listening procedure. This resulted in making the requests either be under queue, or sometimes causing timeout, and fail immediately.

Besides this, the request error rate hiked to 50% making customers, experience errors, while interacting with the website and the mobile app.

With an end goal to moderate the saturation, the exchange redeployed the API at 16:20 PDT to escalate the machines serving the traffic.

Furthermore, responding to these issues, the Coinbase team assured that it is working on several enhancements. In the long-run, the exchange is planning to work on its deployment process. This is in order to mitigate issues experienced by the exchange so far.

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