The market-wide crypto downturn is stirring up a lot of emotions in investors. The debate over whether major cryptos like Bitcoin (CCC:BTC-USD) will recover is rampant, and those who want to buy the dip are flocking to exchange platforms. The same is true for those looking to sell. As a result, Coinbase (NASDAQ:COIN) has seen a ton of congestion. With Coinbase down this morning, investors have a lot of questions — and a lot of frustration.
This morning, Coinbase is seeing a lot of technical issues. It first tweeted via its support account that operations are abnormal today. The post has been followed up since with a more detailed message cataloguing some of the issues. Users are having trouble even logging into the exchange platform. Those that are in can’t seem to check balances or trade.
Coinbase’s status page has an extensive list of the problems plaguing the exchange this morning.
It seems that Coinbase API, as well as the website and its mobile app themselves, are facing outages. This means that many users are unable to access their account across both platforms. Additionally, Ethereum (CCC:ETH-USD) trading has been marked as suffering “degraded performance.” Stellar Lumen (CCC:XLM-USD) withdrawals have also been flagged.
With Coinbase Down, Investors Clash Over Cryptos
The outage is coming at a less-than-convenient time for traders. With many rushing to buy the dip — or panic sell — it seems Coinbase couldn’t handle the rush of traffic.
The tech issues are hurting COIN stock this morning, with values plunging over 8% since the day’s trading session began. But, even more importantly, the outage is reinforcing bearish attitudes about crypto in general. The outage has supplied plenty of ammo for digital currency doubters, scoffing at the idea of crypto being the currency of the future:
Bitcoin is down 29%
Ether down 40%
Binance disables Ether withdrawals.
Coinbase facing “intermittent downtime”
Yup, crypto is the future of money.
— Tim Culpan (@tculpan) May 19, 2021
Others have clapped back at these tweets, citing the same issues plaguing traditional exchange apps like Robinhood:
Yup, the stock market is the future of money.
— Mike DiAmore (@MJDiAmore) May 19, 2021
Binance, another popular exchange play, is seeing the same issues. Traffic congestion has caused a slew of issues for its exchange, proving the huge impact of today’s crypto crash.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.