Coinbase and Kraken Experience Limited Service Amid Market Turmoil

According to user complaints on Twitter, both Coinbase and Kraken platforms either went down or experienced intermittent lag issues on November 8 amid market turmoil. The news comes after it was revealed that crypto exchange Binance intends to acquire rival FTX.

According to Twitter users, service has been limited on both exchanges, with unconfirmed rumors of issues related to connecting to the platform and withdrawals being suspended.

BREAKING: Coinbase is down! Several services are down right now.

Now you are looking at real bear market trading

— Mason Versluis (@MasonVersluis) November 8, 2022

In their support profile, Coinbase said, “We are experiencing network connectivity issues with Coinbase.com, Coinbase Pro, and Coinbase Prime. This may cause sign-in difficulties. If you are already signed in, , web and mobile apps”, claiming that the problem is related to the high levels of new user sign-ups and transfers to the platform today.

We have implemented a fix and the latency has improved dramatically. Due to the high level of new user sign-ups and his migration to Coinbase today, some customers had trouble signing up or experienced sign-in delays. https://t.co/IcA6wtZz1N

— Coinbase Support (@CoinbaseSupport) November 8, 2022

Kraken did not comment on the channel issue, but emphasized that it uses proof-of-reserve audits to allow customers to see the balances held on the exchange and their underlying assets as well.

Check if the exchange you are using has a Proof of Reserve audit.

ICYMI: Kraken engages in regular audits – ensuring balances held on exchanges are backed by real assets

Don’t trust me, check your balance now ⤵️
https://t.co/sI0TkgLTHq

— Kraken Exchange (@krakenfx) November 8, 2022

With Proof of Reserves (PoR), an independent third-party audit is performed to ensure that the custodian’s assets are being held as claimed.

The market turmoil was sparked by FTX founder and CEO Sam Bankman-Fried (SBF) announcing a “Strategic Trading Agreement” with Binance on November 8th. This is aimed at acquiring FTX after Binance made the decision to liquidate his 23 million FTT tokens. , causing a liquidity crisis on FTX. Some have compared this trade to a “chess move”, implying that Binance’s strategy led to the trade on purpose.

A series of tweets triggered a sale of FTX tokens below the pattern’s support line. The sell off continues and the token is down more than 76% in the last 24 hours and is negotiating at $5.09 at the time of writing.

Hours after the transaction, Binance CEO Changpeng Zhao (CZ) also I got it On Twitter, the exchange said it would start using reserves soon, adding, “Banks operate on fractional reserves. Cryptocurrency exchanges should not.”