All our readers who have been following CoinSyncom these last few days probably know that Bitcoin crashed just like we anticipated. Yet, it seems that the biggest cryptocurrency isn't the only thing that came crashing down during the last weekend before the halving. Coinbase and Bitcoin crashed simultaneously. This means that in the midst of the sell-off, Coinbase users found themselves locked out of their trading accounts on one of the biggest crypto exchanges in the world.
This is not the first time that Coinbase, the biggest crypto exchange in the US, went off in 2020. In March, as the COVID-19 pandemic spread across the globe, Coinbase also shut traders out of their accounts during the major sell-off. In other words, Coinbase and Bitcoin crashed together. Moreover, 2019 also wasn't kind for Coinbase clients who experienced at least two similar crashes.
At the end of April, another major BTC move made Coinbase buckle once again, leaving their users wondering if the company was doing anything at all to prevent such occurrences.
The only answer that Coinbase is silently offering is - no. Obviously, either the company doesn't care for its customers or it's doing this on purpose. In both cases, users lose.
Interestingly enough, Coinbase isn't the only cryptocurrency trading platform with such an "issue". In the history of crypto derivatives trading, on more than a few occasions, websites mysteriously crashed during sell-offs or steep spikes. That has become such a problem that some companies are making it a cornerstone of their marketing campaigns.
What you see above is the main selling point of the BaseFEX crypto trading platform. It is obvious that even other exchanges are aware of misconduct in the industry. Now, if that doesn't make one wonder about the business practices of centralized exchanges, nothing will.
In the aftermath of the Coinbase crash, the crypto trading community on Twitter went ballistic. The majority of posts criticize Coinbase of "being unable to solve the problem". Some are even looking for alternatives as all agree that these kinds of incidents are inadmissible.
It has to be taken into account the possibility that this just might be a type of fraudulent behavior. Therefore, we have to ask ourselves where are the regulators? The USA is a country where regulators practice the highest levels of scrutiny towards all kinds of markets. Analogically, one would expect Coinbase users to be protected way better than it is the case at the moment. Even if this was just another honest mistake by the company, the fact of the matter is that it might cost a lot of people a lot of money.
In the past, the SEC was quick to issue cease and diciest orders against all sorts of crypto-related startups doing crowd fundings the "protect investors". Therefore, it is a bit strange how the same commission can't deal with this problem in a similar manner. Then again, it is also possible that the government is there waiting for Coinbase clients to file the official complaint. In any case, it seems that before users take action instead of complaining via social networks, this practice is going to continue.
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