As bitcoin and a number of digital assets saw deep losses on Monday, a few crypto-asset exchanges had difficulties. Traders have been complaining about issues with exchanges like Coinbase, Kraken, and other trading platforms during the volatile price swings.
Bitcoin (BTC) and many other cryptocurrencies have suffered a dip in value during the course of the day on Monday. While all the action happened, members of the crypto community and traders started complaining about exchange issues.
“Coinbase couldn’t really couldn’t be performing any worse during these high volatility situations,” The Block analyst Larry Cermak tweeted on Monday morning (EST). Digital currency exchanges also had issues keeping up with demand and traffic this past Sunday (Jan. 10) and on Friday (Jan. 8) as well.
This is crazy! Exchanges are having issues trying to cope up with #Bitcoin and other cryptos demands. I guess some are not ready with this overwhelming traffic of demand and supply in the #crypto world. 🚀📈📉
— 𝒜𝓃𝒿 𝒟𝒞🥀 (@twitgel) January 8, 2021
In another instance on Monday, the analyst Willy Woo tweeted about the San Francisco exchange Coinbase and stated that “buys on Coinbase are not completing. In the midst of the bitcoin (BTC) price drop on Monday at around 11:37 a.m. (EST), Woo added:
Coinbase is $350 lower than other exchanges right now, it’s throwing off derivative indexes and likely impacting trade algos.
At the time of publication, Coinbase doesn’t seem to be suffering from any issues today, according to the company’s status page. However, during the last two days, the San Francisco trading platform had an issue with “delayed transfers,” and the day prior it suffered from “delayed transfers and elevated error rate.”
ATH system traffic again. Systems holding up so far, not perfect, slightly higher latency in some regions. https://t.co/Jo4UIPQaL8
— CZ 🔶 Binance (@cz_binance) January 11, 2021
The Twitter account representing Coinbase support also tweeted about the incident on Monday.
“We’re investigating an issue impacting transactions on Coinbase.com and the mobile apps,” the company wrote. “The record of a recently initiated transaction may be delayed in showing up in your Coinbase account. There may also be some issues with some buys completing on the platform. Please do not re-submit your transaction – it will result in duplicate activity.”
An hour later, Coinbase said that a fix was released and the issue was resolved. Coinbase was not the only exchange to have issues during Monday’s trading sessions. Cryptocurrency traders also complained about Kraken going offline for a temporary amount of time as well.
As far as Woo’s opinion goes, when he said that the price discrepancies would throw off trading algorithms, a few crypto proponents said that the industry would do better with oracle-based price feeds and that exchanges like Coinbase should consider adding protocols like Chainlink.
What do you think about exchanges having issues during volatile price swings? Let us know what you think about this subject in the comments section below.