Coinbase Warns of Transaction Halts As Bitcoin Plummets

Coinbase (NASDAQ: COIN) seems to have been halting some transactions on its platform due to what it refers as “elevated error rates.”

“We’re currently investigating elevated error rates across Coinbase.com (web and mobile). Customers may have trouble trading or completing a buy/sell,” said the firm’s advisory.

This comes shortly after bitcoin suffered a nearly 5% sharp decline, bringing the level back down to the $35,000-mark.

Just this month, Coinbase reported in Q3 2023 a quarterly total revenue of $674.1 million, a drop from Q2 2023’s $707.9 million. While the firm labeled this “a strong quarter,” it recorded its lowest trading volume since Q4 2020, only managing to post $76 billion. This is a decrease from last quarter’s $92 billion and last year’s $159 billion.

The firm points to low volatility environment for the decline in consumer transactions while the decrease in institutional transactions are said to be due to “lower Markets volume.”

READ: Coinbase Q3 2023 Financials: “Strong Quarter” Is Weakest Volume Traded In Three Years

Coinbase’s advisories on its services have been highlighted by observers, including concerning clauses in the terms of service for the firm that raised doubts about the stability of stable coin USDC.

Still, according to the X user Rho Rider, both Coinbase and Circle, the organizations behind USDC, have incorporated clauses in their terms of service that relieve them of any obligation to redeem USDC for $1 USD. Circle’s guarantee for redemption only extends to Circle account holders, while they have barred retail customers from holding such accounts.

The most concerning aspect of the post is that, based on the terms of service for Coinbase and Circle, USDC holders seemingly have no inherent rights to redeem their tokens for cash. If either of these organizations found themselves in an illiquid position, they could choose not to purchase redemptions, potentially rendering the USDC worthless.


Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Is Gold’s Bull Market About to Hit Junior Stocks? | Ken Armstrong – Westhaven Gold

Surge Battery Metals: The Nevada North Lithium PEA

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

MicroStrategy Buys More Bitcoin As It Sustains More Losses From Crypto Investment

MicroStrategy (Nasdaq: MSTR) announced on Tuesday its Q3 2022 financial results toplined by a quarterly...

Wednesday, November 2, 2022, 09:59:05 AM

Hut 8 Mines 265 Bitcoin In November 2021

Hut 8 Mining Corp. (TSX: HUT) reported today its production results for the month of...

Thursday, December 2, 2021, 09:27:00 AM

JPMorgan: Bitcoin Could Crash 25% Amid FTX Contagion Crisis

The financial catastrophe currently imploding cryptocurrency exchange FTX is spilling over into the broader sector,...

Friday, November 11, 2022, 04:41:00 PM

Bitcoin Miners Bracing for Multibillion-Dollar Revenue Hit as Reward Halving Looms

The Bitcoin network is set to undergo its highly anticipated “halving” event around April 20th,...

Monday, April 15, 2024, 03:10:00 PM

Bitcoin Could Potentially Have 70% Downside Even From These Levels

Bitcoin continues to slide from its all-time high of nearly US$69,000 in early November. A number...

Saturday, December 18, 2021, 03:36:00 PM