Coinbase, the largest cryptocurrency exchange in the United States, said that its systems could not cope with a huge surge in traffic amid the rapid rise in bitcoin prices to $ 10,000 in early June.
In a Coinbase blog post published on June 6, it said that the exchange experienced a 5-fold surge in traffic for four minutes at around 4:05 p.m. PDT on June 1, when the price of bitcoin exceeded the $ 10,000 mark.
“The surge in traffic has affected several of our internal services, increasing the delay between them. That led to an overload of the web servers that are responsible for our API, as a result of which requests were either queued or canceled immediately. The level of errors in requests increased to 50%, as a result of which customers encountered errors when interacting with coinbase.com and our mobile applications,” the post says.
Coinbase redeployed the API, but then another two-minute break occurred due to a new congestion.
Over the past three months, Coinbase recorded four times a malfunction during significant fluctuations in the price of bitcoin, as a result of which many users could not access their assets.
Twitter user CryptoWhale has posted a chart that shows that Coinbase went offline 11 times during significant Bitcoin price movements:
After doing more research into exchanges uptimes, I've noticed a substandard pattern from #Coinbase.— Whale 🐋 (@CryptoWhale) June 3, 2020
Their exchange seems to be programmed to go "offline" anytime theres a $500+ move in #Bitcoin's price. Over the last year, Coinbase has gone offline 11 times during larger moves. pic.twitter.com/3fNOU1QuiZ
“In the long run, we plan to improve our processes to mitigate the problems we are facing,” the exchange said.