Coinbase Experiences Technical Disorders Again, Balance Investor Accounts To Zero

Coinbase had experienced a disruption. (Photo; Doc. CryptoNewsmen)

JAKARTA - Coinbase Global Inc., the largest crypto exchange in the US, experienced another technical disruption that made the account balance of several investors zero. This is the second incident in less than a week that hit the exchange.

Coinbase said that the disruption occurred on March 5, as the price of Bitcoin was approaching an all-time high of $69,000. However, the company insists that this issue is only temporary and does not affect real investor assets.

"We realize that a small number of users see zero balances on their accounts. This is a display problem and we are working to fix it. Your assets remain safe and unaffected," Coinbase said in a tweet.

Coinbase then provides an update that the display problem has been resolved and the service has recovered normally. The company also apologizes for the inconvenience caused by this annoyance.

Coinbase is under the supervision of US financial authorities, the Department of New York State Financial Services (NYDFS), which continues to communicate with the exchange to ensure that there are no losses or vulnerabilities experienced by consumers or institutions.

Coinbase Is Not Alone, Other Crypto Exchanges Are Also Vulnerable

Technical impairment in Coinbase is nothing new. On February 22, the exchange also encountered similar problems that made the investor account balance zero or negative. Coinbase said that the problem was caused by an error in the third-party payment system used by the exchange.

Coinbase is not alone in dealing with technical problems. Other crypto exchanges such as Binance, Kraken, Bitfinex, and others also often experience similar problems, especially when the crypto market experiences high volatility.

One of the factors that cause technical disturbances is the surge in trading activity that exceeds the capacity of the stock exchange infrastructure. Last week, Coinbase said that the traffic on its platform had increased more than 10 times its normal volume.

To anticipate market volatility, several crypto exchanges have sought to improve the performance and stability of their systems. For example, Crypto.com and Bitstamp have implemented a scalable process to deal with traffic spikes.

David Schwed, COO Halborn, a company engaged in blockchain security, said that technical disruptions on crypto exchanges show that crypto market infrastructure still needs to develop to adapt to increasing demand and volume.