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On February 29, users of Coinbase faced another technical bug showing discrepancies in their account balances.
Coinbase, an American cryptocurrency exchange, assured users of asset safety as the network is experiencing another update. However, amid the surge in Bitcoin price, Coinbase customers were not able to view their account balances due to a technical glitch in the software.
Some of the users have witnessed an all-time low balance in their funds, and some users have also shown their account balances to be zero. This has created panic among the users and they wanted to know how all of a sudden their funds and investments evaporated.
With the report from a few users, all the other users also started to check their account balances in panic, which led to a sudden spike in the visitors on the platform.
This sudden panic has triggered a whopping loss of $100 Billion from Bitcoin markets, reducing its market cap by that amount in just fifteen minutes after the first reporting of a loss in funds.
When and how was the glitch discovered?
The glitch was discovered at the same time when bitcoin was breaking daily records, inching closer to its all time high. Bitcoin fell to $59,000 amid reports of the glitch.
BTC was able to sustain its rise and is currently trading at over $66,000, marking a significant increase after the bug discovery.
A similar event has occurred twice in a week. Previously, as well, the users’ accounts were shown a zero balance. One of the spokespersons for Coinbase said the recurrence of the bug could be just a display problem.
Apart from the zero account balance, Coinbase also confirmed that there was an increase in latency on the platform. To reduce fear in the customers’ minds, the crypto exchange has assured that no destruction has occurred to the funds of customers.
To resolve and prevent such issues, Coinbase is undergoing investigations, although trading on the platform is operational as usual.
Coinbase’s Technical Glitch and Bitcoin Price Surge
The reason for the glitch in the platform has not been revealed completely, with some crypto followers guessing if it is linked to the surge in the BTC price. Some of the crypto firms have claimed that such technical issues have occurred multiple times with the Coinbase platform in the past.
These technical glitches were previously linked to sharp movements in Bitcoin prices.
Around the same time, Coinbase had its BTC/USD trading volume dominance reach a yearly high of 53%. Ki Young Ju, co-founder of the crypto analytics platform Cryptoquant, has provided this insight and CoinMarketCap has further confirmed this cumulative volume on Coinbase.
Such a significant volume growth would have triggered the activation of the bug that is currently making users’ account balances reflect zero. These are just speculations and the real reason is yet to be figured out. Coinbase is under constant scrutiny by users and industry experts.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
