Cryptocurrency exchange Coinbase went down for many users on Wednesday morning as the prices of digital coins tumbled.
Coinbase has reported their crypto exchange was experiencing a “partial” outage on the website and mobile app. Coinbase is not the only one to experience issues during the crypto crash, with Binance, Gemini, and CoinMarketCap also experience reported outages.
Both Coinbase and Binance are claiming issues that are specific to the withdrawal process for Ethereum (ETH) and ERC-20 tokens. The delay is being blamed on network congestion. In an official statement on their Twitter account, Coinbase said:
“We’re seeing some issues on Coinbase and Coinbase Pro and we’re aware some features may not be functioning completely normal. We’re currently investigating these issues and will provide updates as soon as possible.”
The crashing websites and exchanges come as crypto values took a steep dive in the last 24-hours, with bitcoin (BTC) and ethereum seeing a dramatic dip in value. The drop is being attributed mostly to the recently announced Chinese crackdown on the use and trading of cryptocurrencies.
China’s crypto ban
Under the new crypto ban, no online payment channels or banks are allowed to offer customers any service having to do with cryptocurrency. The decision is a strong 180 move from the People’s Bank of China’s quote in April that bitcoin was a viable investment alternative.
Today, the price of bitcoin dropped by more than 30% and bottomed out around $30,000. Ethereum was down 40% to under $2,500 and dogecoin (DOGE) fell almost 50% to under $0.35, at the time of writing. The rapid losses and inability to sell or buy only adds to the frustration for traders.
In its S-1 filing with the Securities and Exchange Commission, Coinbase noted that volatility or quick market shifts can put excessive pressure on their platform and cause issues. “Abrupt changes in volatility or market movement can lead to extreme pressures on our platform and infrastructure that can lead to inadvertent suspension of services across parts of the platform or the entire platform,” it said.