- Coinbase has encountered issues with the electronic system that facilitates online US bank transfers
- Leading blockchain Solana also suffered hours of downtime over the weekend
Coinbase has reassured users that all funds are safe after the exchange was unable to process US banking transactions for nearly six hours over the weekend.
Account holders with US bank accounts found they were unable to make withdrawals or payments on Coinbase from 6:57 a.m. ET to 12:41 a.m. ET Sunday.
The company identified the problem as a problem with the Automated Clearing House (ACH) system, the electronic network that facilitates online transfers between US banks.
Users in the United States weren’t completely blocked from buying crypto, as they could still use a debit card or PayPal account. But cash withdrawals were frozen entirely during the outage.
Coinbase says more than 103 million people around the world use its platform, but it’s unclear how many hold US bank accounts. A spokesperson did not return Blockworks’ request for comment until press time.
America’s premier exchange is one of the largest in the world, with trading volumes of around $966 million in the past 24 hours, CoinGecko Data shows.
ACH hitches may yet be the least of Coinbase’s problems. Its stock price fell more than 9% on Thursday after Wells Fargo issued a warning about the company’s profitability.
Growing competition from Binance and FTX will put pressure on the company and eat into its market share, equity analysts Jeff Cantrell, Amid Patel and Griffin MacMaster wrote in a note seen by Blockworks.
Given recent SEC discussions regarding “cryptos as securities” (as with staked assets), regulation will be a particular challenge for the firm, they added.
Coinbase is trading down 2.3% in Monday’s pre-market session at $63 per share, down 75% year-to-date, according to Data from TradingView.
Coinbase Banking Troubles Alongside Solana Unavailability
Coinbase’s issues with the US banking system weren’t the only outage event this weekend.
Leading blockchain Solana stopped processing transactions due to an issue that caused around six hours or interrupted service on Saturday morning.
The downtime has affected DeFi applications across the Solana ecosystem, as many rely on constant connection with protocols across the crypto landscape, especially price oracles.
Chain watchers noted that decentralized trading protocol Mango Markets was unable to handle liquidations or receive margin deposits until the issue was resolved, affecting at least one large long contract d worth nearly $2.5 million.
Solana validators have finally coordinated to restart the network, which has suffered at least 12 major outages so far in 2022, according to its incident history.
The price of Solana’s native token, SOL, was largely unaffected by the incident, having lost around 3% over the weekend, more or less in line with the rest of the digital asset market.