Bitcoin's rise has turned out to be bad news for cryptocurrency trading app Coinbase, which has just confirmed that some of its customers have zero balances in their Coinbase accounts. “Your assets are safe,” the company assured app users on its website's status page, adding that its team is investigating the issue and will provide an update soon.
Perhaps the app crash is related to the recent demand for Bitcoin, a popular cryptocurrency that soared to a near all-time high of $60,000 in 2021. Bitcoin prices rose on the back of the US Bitcoin Spot ETF. This month caused a 42% price increase. This was the digital asset's biggest monthly gain since December 2020, according to Reuters. Bitcoin is currently trading above $61,448, up 7.66% today.
This meteoric rise has renewed interest in apps like Coinbase that allow users to buy, sell, and hold crypto goods in digital wallets. This rapid increase in demand, including from more casual crypto investors, may have contributed to the app's current issues, although Coinbase has not yet identified the cause.
On Wednesday, users of the Coinbase app became increasingly concerned after noticing that their account balances were zero when they logged in, despite owning crypto assets.
Meanwhile, the company's X (formerly Twitter) tech support channel responded to users with a standard set of troubleshooting steps instead of acknowledging that the problem was on Coinbase's side. Insulated from the ups and downs of larger organizations. The company has now begun to inform users that it is aware of the issue and is working to quickly resolve the issue.
Coinbase's own status page was first updated at 9:40 a.m. PT, confirming that it was investigating the issue.
“We are aware that some users may see zero balances across their Coinbase accounts, resulting in errors when buying and selling,” the company wrote. New post on X. “Our team is investigating this and will provide an update soon. Your assets are safe.”
This issue comes at a bad time for Coinbase. Many casual investors have returned to the crypto trading market, apparently with no capital.
1 user on X commented. People who shared a photo with zero balance“My mother called and asked, and mine was zero,” they said.
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