coinbase can't trade

Coinbase's trading outage during the May 2023 market volatility highlighted the challenges and risks associated with cryptocurrency exchanges, as well as the impact of market forces on investor portfolios.

Nov 06, 2024 at 04:34 pm

Headline: Coinbase Restricts Trading Amid Market Volatility

1. Overview

The cryptocurrency exchange Coinbase, one of the largest in the world, experienced a trading outage on May 13, 2023, due to extreme market volatility. The outage affected all trading and ancillary services, leaving users unable to buy, sell, or withdraw funds.

2. Timeline of Events

• May 13, 2023: Coinbase announces the trading outage at approximately 10:00 AM UTC.
• May 13, 2023: The exchange halts all trading due to "unprecedented market conditions."
• May 14, 2023: Coinbase engineers work to resolve the issue and restore trading services.
• May 15, 2023: Coinbase resumes trading, subject to certain operational limits.

3. Market Volatility

The trading outage was triggered by a sharp decline in the value of major cryptocurrencies, including Bitcoin and Ethereum. This volatility was caused by a combination of factors, including global economic uncertainty, regulatory concerns, and a liquidity crisis at the Celsius Network.

4. Impact on Users

The trading outage had a significant impact on Coinbase users, many of whom were unable to adjust their positions or withdraw funds during the market selloff. Some users reported losses due to the inability to sell at favorable prices.

5. Exchanges Affected

Coinbase was not the only exchange affected by the market volatility. Many other crypto exchanges, including Binance, FTX, and Kraken, also experienced trading outages or technical issues.

6. Resolution

Coinbase engineers worked diligently to resolve the trading outage and restore services. On May 15, 2023, the exchange resumed trading, but with some operational limits in place to ensure stability. Coinbase has assured users that they are working to strengthen their infrastructure and prevent similar outages in the future.