Coinbase And Binance Users Report Outages As Cryptos Crash

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by Tyler Durden
Wednesday, May 19, 2021 - 09:23 AM

Update (1005ET): It's not just Coinbase and Binance that are experiencing issues and outages on this terrible Wednesday morning after cryptos crashed. Users of other cryptocurrency exchange platforms, such as KuCoin and Gemini, are also reporting problems. 

Since crypto is the same trade to marginal retail traders leveraging up in tech stocks, panic has also spread into equity markets, with Downdector reporting issues and outages at Fidelity. 

Watching the unwinding of leverage is a chaotic but beautiful sight.

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With more than a trillion dollars in wealth wiped out in crypto markets as Ether crashes 40% and Bitcoin traders around $33k, popular cryptocurrency exchange platforms, such as Coinbase and Binance, are reporting issues and or outages across the US. 

Downdector reports Coinbase users began to experience issues and or outages around 0835 ET. 

Coinbase issues appear widespread. 

 Coinbase's website status page says: 

"We are investigating delays in ETH and ERC-20 withdrawals due to network congestion. All funds remain safe and secure. Deposits are unaffected." 

The same goes for another cryptocurrency exchange, Binance, which began experiencing issues and or outages around 0810 ET. 

Binance tweets they "temporarily disabled due to network congestion." 

Issues and outages with popular cryptocurrency exchanges come as millennials are panicking as their crypto portfolios are slaughtered. 

Things escalated a little more since we first wrote about the crypto crash this morning. Ethereum is the biggest loser, crashing below $2000 (briefly), down 40% on the day, and Bitcoin is testing $32k (down 25%)...

And that leaves total crypto market capitalization down over $1 trillion from its highs...

Millennials will remember the true meaning of May: "sell in May go away." 

... and to gauge how millennials are feeling this morning - they are absolutely panicking. 

Meanwhile, JPMorgan told clients in a note: "Our current fair value for bitcoin based on a volatility ratio of bitcoin to gold of around x4 would be $35k."

Coinbase shares have tumbled 12% at the US cash open to $210.28, a record low from its recent IPO.