TL;DR Breakdown
• Coinbase is trending on Twitter due to the flaws in its system.
• China causes the biggest cryptocurrency crash of 2021.
Coinbase’s official website crashed on Wednesday as major cryptocurrencies plunged on the market. The crypto exchange system had major technical issues, and its users did not hesitate to report it. Shares of the company Coinbase Global fell 5.2%, which caused a loss of $226.49.
Users reported that the website had flaws in Coinbase Pro and its official exchange platform. Coinbase has acceded to trying to fix the problem so as not to affect the experience of its users.
Bitcoin crash affects Coinbase
Coinbase’s downfall comes after China’s measures against crypto investments were announced. This news came after the company announced its value of $1.25 billion of notes converted at 0.5% up to 2026.
Users of the crypto exchange expressed their discontent through social media networks such as Twitter. The hashtag #cryptotrading has been trending since the early hours of Wednesday. One Twitter user said that the exchange collapses whenever there is a significant price drop in the most popular cryptocurrencies.
This drop makes Bitcoin or Ethreum investors unable to withdraw their tokens to avoid a more significant loss. Discontent is spreading because recently, Bitcoin has lost 54% of its value. The cryptocurrency crashed after the People’s Bank of China warned financial institutions about its use.
China’s measures affect Coinbase
The Bank of China note that financial payment institutions in the country cannot set their prices in cryptocurrencies. These authorities are prohibited from generating tokens that help their economy.
According to Reuters, China’s warnings do not directly affect the exchange but the companies that work with cryptocurrencies. Cryptocurrency exchanges are prohibited in the Republic of China, which indirectly affects Coinbase.
In a WeChat post by PBPC, the Bank of China clarifies that cryptocurrencies should not be used in financial markets. The bank also suggests that digital currencies are not part of the real economy, like the dollar, because they are not palpable currencies.
However, the PBOC has been creating its digital currency system that the government will support. These cryptocurrencies will carry the name of DCEP or digital currency electronic payment system for a few months. The government aims to use DCEP to replace the bills and coins usually used in the economy.
Regarding the offer of the crypto exchange system, the banknotes will be sent to institutional buyers. These folks have an alternative on $187 billion more notes if demand requires its in supply.
The San Francisco company expects to make about $1.22 billion after the offering budget. This company could also earn $1.44 billion if traders ask for the option in full.
