Coinbase outage caused crypto purchase issues, not an intentional ban

On January 29, a number of Coinbase users reported issues with the platform’s buying and selling functions. Coinbase’s difficulties surfaced just a day after Robinhood blocked the purchase of GameStop shares after stock prices soared. A recent blog post notes that Coinbase’s difficulties stemmed from a service outage, not a trading ban.

Coinbase said in a February 5 post: “Between 4:25 AM and 9:31 AM PST on Friday, Jan 29th, there was an outage of service.” “During this time, many users encountered errors while trying to use the post,” the post added, adding that the Coinbase app and its cryptocurrency buying, selling and trading features are intermittently available, adding that users of a professional exchange, Coinbase Pro, are still able to log into the platform.

What are the causes of problems with Coinbase? Difficulties with crypto price data. “It was quickly diagnosed as an issue with the Redis suite used to store spot rates for currency conversions,” as detailed in the blog post. “These spot rates are used for estimated conversions between currencies, which puts them in the critical path of a range of functions such as displaying the value of your portfolio in your local currency.”

Basically, some of the background processes are becoming overburdened and decreased, judging by the post information in the post. The Coinbase tech team tried a number of options and eventually found the right solution, which revived functionality on the platform. The post also went deeper, setting a calendar of events on the backend during the technical disruption.

“Any requests based on exchange rate data were failing, so users were unable to access important functions on our site,” the post was referenced as a result of the issues described in the backend events timeline.

Coinbase incorporated several changes that the team made for future improvement. The platform’s difficulties are not alien to Coinbase. The device has encountered many connection problems in the past. In November 2020, Coinbase CEO Brian Armstrong tweeted about the company’s work towards fixing its issues.