TL;DR Breakdown
- Coinbase experiences another issue due to crypto market volatility.
- The firm had purchased Routefire to help it better combat against such outages
Crypto exchanges like Coinbase and Binance have experienced issues due to price volatility of the crypto market.
Exchanges had run into problems previously when there was a rise or fall of asset values in the market
The crypto market saw the price of assets like Bitcoin drop from its over $40k mark to as low as $30k today. While Ethereum, the second largest crypto asset, also saw its value dropped from its above $1k level to as low as $900.
In the early hours of today, CEO of Binance, Changpeng Zhao tweeted about how the exchange was experiencing an all-time high level of activities. According to him, Binance was experiencing some issues in responding to this record high activity as it is experiencing higher latency in some regions.
Coinbase also experienced a similar issue. According to a statement released by the exchange, its mobile app and its website were experiencing delay in their transactions.
The San Francisco-based exchange advised their users not initiate the same transaction again as it would only result in a duplicate activity.
Values of assets were also lower on Coinbase. A crypto analyst, Willy Woo was of the opinion that the false price on the platform would trigger a more massive sell off as it gives a false signal to the market.
Coinbase acquires Routefire to combat constant connectivity issues
In its bid to better combat the constant connectivity issues it tends to experience, Coinbase has acquired Routefire.
We reported how Coinbase had made this acquisition in order to help it improve on the frequent outages its platform tends to experience frequently.
Also highlighting why it was necessary for the firm to make the acquisition because it had set eyes on going public with an Initial Public Offering (IPO) that has already been filed with the Securities and Exchange Commission (SEC).
