On October 27, the digital currency markets collapsed again, causing some currencies to drop in double-digit percentage.
As usual, one of the main gateways to the so-called decentralized world, Coinbase (NASDAQ: CURRENCY), was inactive for many users.
Twitter user Crypto Whale drew the attention of his hundreds of thousands of followers to the outage. Once again, we see how the myth of decentralization is a lie and how a website outage can cause mass panic and the inability to sell amid major price pullbacks and corrections.
#CoinBase is offline again. pic.twitter.com/154i3dDekz
- Mr. Whale (@CryptoWhale) October 27, 2021
Why does Coinbase often go offline during glitches?
Coinbase.com is one of the largest digital currency exchanges. It was recently made public with a $ 86 billion valuation, which makes it larger than many international banks by market capitalization.
However, it appears that despite this huge valuation and the vast resources that accompany it, Coinbase has been unable to secure the hardware necessary to deal with large influxes of users during failures. This same issue plagued Coinbase in the bull market of 2017, and coupled with the lousy customer support for which it is famous, it appears that the company has been unable or unwilling to keep its website online during peak demand.
However, it is noteworthy that Coinbase rarely experiences interruptions or downtime during the influx of users wanting to buy digital currencies. When BTC and other altcoins are red hot, Coinbase seems to handle the increased demand on its servers well. However, when digital currency prices decline or collapse, it appears that Coinbase cannot handle the traffic.
This should give regulators pause, who are increasingly studying the antics of the big players within the industry.
Coinbase under fire for its LEND platform
Coinbase has never overlooked a trend in the digital currency space. He listed several possibly illegal securities and ICOs, although he was more careful than Binance in this regard, and more recently tried to take advantage of DeFi and NFT cash grabs.
Unfortunately for Coinbase, its foray into DeFi came a bit late, and just as US regulators are starting to get tough on so-called decentralized lending. The Securities and Exchange Commission (SEC), headed by Gary Gensler, launched an investigation into the LEND platform proposed by Coinbase.
The investigation prompted Coinbase CEO Brian Armstrong to launch an ill-mannered tirade on Twitter, displaying a complete lack of knowledge about securities laws and making paranoid allegations that the SEC was somehow unfairly targeting Coinbase while at other companies were allowed to offer digital currency performance. rampant. He called the SEC's actions "intimidation tactics" and labeled them "incomplete."
1 / Some really vague behavior that came out of the SEC recently.
Story time ...- Brian Armstrong (@brian_armstrong) September 8, 2021
Since then, Coinbase has proposed regulations that it says would be conducive to innovation within the industry, prompting the SEC to remind Armstrong and his company that they set the rules with a mandate to protect investors and not promote no company's agenda.
Coinbase also paid a $ 6.5 million settlement in early 2021 when the CFTC accused her of reporting misleading transaction data. This puts you on a long list of digital currency exchanges that have been fined or are under investigation for questionable behavior. Coinbase did not admit to committing any wrongdoing when it paid for the deal.
Coinbase names Satoshi Nakamoto's identity as a major threat to their business
Interestingly, when Coinbase went public in 2021, it listed one of the top threats to its business as revealing the identity of Satoshi Nakamoto, Inventor of Bitcoin.
For those who understand the situation, it is clear why this would be a threat: Satoshi Nakamoto is, in fact, Dr. Craig Wright, and he has a history of being outspoken about firms like Coinbase, whom he labels as "bucket shops," and their selling worthless tokens and possible illegal securities to unsophisticated investors.
Dr. Wright has repeatedly stated that he will be confirmed as Satoshi Nakamoto beyond all doubt by the evidence presented in the Kleiman vs. Wright 'trial of the century', which will begin in November.
If Coinbase is correct that Satoshi's identity is an existential threat, it could soon find itself caught in an extinction event that will sweep across the digital currency industry. CoinGeek will report on the case and the fate of Coinbase, as it unfolds.
Follow, continue Crypto Crime Poster by CoinGeek series, which delves into the stream of groups, one of BitMEX for Binance, Bitcoin.com, Blockstream, ShapeShift, Coinbase, Wave and EthereumโWho have taken over the digital asset revolution and turned the industry into a minefield for naive (and even seasoned) market players.
New to Bitcoin? Take a look at CoinGeek's Bitcoin for beginners , the ultimate resource guide to learning more about Bitcoin, as originally envisioned by Satoshi Nakamoto, and blockchain.
