Bitcoin price rises and Coinbase crashes as usual: trying to explain

It has often been observed that the Bitcoin exchange Coinbase could not be reached with an extreme rise in the Bitcoin price. After many wild conspiracies circulating on Twitter, Coinbase is now trying to explain the incident in a detailed blog post.

300% increase in just five minutes

It was not the first time that Coinbase could not be reached due to extreme volatility of the Bitcoin price and that only an error message was visible to the users of the exchange. This was the case on June 1, when Bitcoin broke the magical $ 10,000 USD mark for the first time in a long time. Even if the joy did not last long, it was at least a sign of where it will lead in the future.

Coinbase tries to explain this incident in a new blog post, because on Twitter the stock exchange has already been heavily criticized for the failures. Coinbase cites the enormous rush that took place at the same time as the extreme rise in the Bitcoin price.

As in the graphic below, veröffentlicht from Coinbase, it can be seen that the increase in users correlates exactly with that of the Bitcoin course. According to its own information, the exchange's traffic has increased fourfold within only 5 minutes:

 

Coinbase: Error rate of 50% due to utilization

The enormous increase in traffic within a very short period of time has affected internal services, which increases the latency times between the services. This in turn led to process saturation of the web servers responsible for the API, where the number of incoming requests was greater than the number of interception processes. The result was an error rate of up to 50%.

The stock exchange has announced that it is working on optimizations based on the latest incidents. The influence of price increases and increased traffic at times of extreme price changes should be countered with pre-scaling and caching.

Many investors were also disappointed by the news that Coinbase has cut interest rates on holding cryptocurrencies significantly. Up to 90% less holders of USDC stablecoins receive:

Bitcoin exchange Coinbase cuts interest rates for USDC holders by almost 90%

 

Markus from Kryptokumpel.de
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