Coinbase has suffered several disruptions since March, often coinciding with volatile Bitcoin trading days .
Coinbase appears to have a capacity problem. Users have pointed out for years that when Bitcoin and other crypto assets are especially volatile, the exchange can sometimes go offline without notice. Such interruptions can prevent customers from buying or selling their cryptographic assets and are generally viewed unfavorably by traders.
Between March and November, the exchange registered nine different problems, leading to various types of interruptions or connectivity problems, although the direct impact on the customer is unclear in some cases. The problems seem to vary in severity. The main status update posted by Coinbase during this period is: “Coinbase.com is experiencing connectivity issues.”
Four of those occurrences coincided with Bitcoin’s volatile price action, according to the 30-minute price candles on TradingView.com.
On April 29, Coinbase reported connectivity problems. In a later update of its status, Coinbase.com appeared to have experienced problems between 10 am and 12:30 pm PDT that day. Bitcoin’s price changed 4.54% during that time window. Cointelegraph previously reported on the platform difficulties seen that day.
On May 9, Coinbase notified the public of another difficulty, stating again: “Coinbase.com is experiencing connectivity problems”. This time, Bitcoin’s price changed 15.26% between 5pm and 6pm PDT – the time window showing difficulties, based on status, which also included added details published several days later.
The third instance correlated to Bitcoin’s notable price action happened on June 1, when Coinbase once again notified the public of connectivity issues. This incident apparently impacted users at some level between 4:00 pm and 5:00 pm PDT, during which time Bitcoin moved 6.94% in price. In the days following this particular incident, some Coinbase customers left the platform, judging by the Bitcoin withdrawals and reported by Cointelegraph on June 9.
Coinbase also suffered another connectivity problem on July 28 between 2 am and 4:30 am PDT, during which Bitcoin moved 3.82% in price.
However, not all of Coinbase’s problems coincided with the main days of BTC price fluctuation. Coinbase notified the public of the problems on November 16, stating : “The website and mobile apps don’t load”. Bitcoin changed only about 1.72% in price during the stated time window of the problems, although it was enough to provoke more outrage within the trading community. Connectivity problems also occurred on May 28 , July 17 , August 18 and November 11 , during which Bitcoin moved less than 3% in price during each incident.
Coinbase did not answer questions about its interruptions. However, the company’s CEO, Brian Armstrong, tweeted that Coinbase aimed to correct the problems.
The exchange of BitMEX crypto derivatives also has a history of performance problems during large Bitcoin price fluctuations.