• Both Coinbase and Binance experienced issues with ethereum withdraws and paused services
  • The crash occurred in the midst of a major selloff in crypto market

Investors looking to buy the dip were frustrated Wednesday morning as cryptocurrency exchanges experienced connection issues. 

Coinbase was offline for about an hour and a half. Both Coinbase and Binance experienced issues with ethereum withdraws and paused services. Both exchanges are now operating normally, the companies reported. 

Users took to Twitter to express frustration with the outages as many attempted to buy at the low prices.

“We’re seeing some issues on Coinbase and Coinbase Pro and we’re aware some features may not be functioning completely normal. We’re currently investigating these issues and will provide updates as soon as possible,” Coinbase said in a statement.

The crash occurred in the midst of a major selloff in crypto markets. Bitcoin and ethereum plummeted 14% and 19%, respectively, in 24 hours, according to data from Coindesk. Dogecoin fell 20% to 38 cents.

Coinbase, which made its public debut via direct listing last month, recently reported first quarter earnings triple those from the fourth quarter of 2020. In Coinbase’s S-1 filing ahead of the direct listing, the company mentioned that volatility can impact service. 

“Abrupt changes in volatility or market movement can lead to extreme pressures on our platform and infrastructure that can lead to inadvertent suspension of services across parts of the platform or the entire platform,” Coinbase wrote in the S-1. 

At the time of publication bitcoin was at $38,657.58 according to CoinGecko.

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    Casey Wagner is a New York-based business journalist covering digital assets and macro economics. Prior to joining Blockworks, she reported on markets at Bloomberg News. She graduated from the University of Virginia with a degree in Media Studies.