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With the news of Bitcoin yet again surpasses the $10k level some crypto users noticed that Coinbase, one of the most used cryptocurrency exchanges/broker sites in the world was down shortly after the price rise.
Threads on popular online discussion site Reddit talked about the issue regarding Coinbase’s downtime during this recent price increase, and that this not being the first time it happens.
So what does this mean for the US-based cryptocurrency exchange? Have they not learned from past issues? And how will they be able to handle any increased volume if and when the next bull run starts?
It is clear that people are not happy about it (Coinbase’s outages). But is it going to affect Coinbase? And more importantly what are they doing to this fix these issues?
Coinbase isn’t alone with this problem
But Coinbase might have been in this situation far too often unhappy crypto holders and traders indicate.
Trading outage & fake trading volumes a common problem
It is not just the outages that plague many cryptocurrency exchanges. Another big problem is the reported fake trading volume that exist in the cryptocurrency space.
Reports of 90-95% (according to Bitwise report – Traders Magazine) of all current cryptocurrency trading volume data being fake. This is of course a big problem for all traders who are looking to find an appropriate cryptocurrency exchange and then sell or buy.
It becomes a problem when crypto traders are unsure of the actual volume and will then have to move from exchange to exchange to find any real trading volume.
Cryptocurrency exchange data reporting sites Coingecko and Coinpaprika are two examples where they have introduced features that tries to show the real data compared to the reported data from the cryptocurrency exchanges.
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Hello and welcome to Go Cryptowise.
My name is Per Englund and I’m a long-term fan and investor of Bitcoin and other cryptocurrencies. I’ve been around the space for a good few years, learning how it all works and to be a part of this engaging community.
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