Coinbase Users Withdraw More BTC than Ever Before for Suffering Outage

Coinbase’s BTC reserve has shortened a lot after the exchange suffered a downtime. In anger, many people withdrew a whole lot and the author of “Black Swan” even left.

The aftermath

The outage happened on June 1 around the time when BTC was appreciating to over $10,000. Just as it happened when BitMex experienced the same outage some months ago, Coinbase users became frustrated. One of the consequences some days after is the exit of Nassim Taleb who wrote the book, “The Black Swan.”

A punishment for Coinbase?

Six days later (on June 7), Coinbase recorded more withdrawals within a day than deposits. The difference was 22,000 BTC (or $214 million). Glassnode data made it known that such a thing has never happened except just once on July 28, 2017 when withdrawals were 22,500 BTC more than deposits. However, the more recent event is worse if the 2017 amount is converted to dollars. During the first experience, 1 BTC was only $2,785 so Coinbase only had a deficit of $63 million that day.

Notwithstanding, Coinbase is still the biggest exchange as it has nearly 1 million BTC more than its closest competitor. But this should not be taken for granted because history records that Bitfinex lost its number one spot among other exchanges just like this. Coinbase is advised to prevent this from reoccurring in the future.

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