Red Flag or Explainable?

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Hi Friends,

Like many of you, I use Coinbase as one the custodians of my crypto. I am not here to debate the merit of keeping coins on exchanges as we all know the risks of doing so (or the flipside risk of cold storage) but I wanted to discuss the prevalence of the service crashes during crypto runs.

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It seems every time Bitcoin starts the next leg up, the exchanges go down. In the latest case, both Coinbase and Kraken had outages as Bitcoin was crossing $40,000. This begs the question - are these red flags or are the outages explainable as heavy user activity during the run?

It is worth nothing that I had plenty of opportunities to sell while Bitcoin was $41k+ so it was only temporary but it does seem like the exchanges are causing you not to be able to trade during the movement - are they front running and getting the available volume because they know it is going up based on order volumes and sizes?

Would love to hear some opinions on the matter from the many of you with more expertise than myself.

Thanks for coming by,

Brian

Posted Using LeoFinance Beta



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6 comments
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Since there is zero regulations in place no doubt something shady is going on.

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Eh regulation doesn't solve much. It's typically in favor of huge companies like Coinbase more then it's there to protect you and I.

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Yes, Wild West for sure. Look at XRP - the executives were just pocketing proceed of ICO as there were no restrictions against it, according to the complaint that is.

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I’m thinking they were going through liquidity issues in preparation for the sell off is what I’m thinking happened.

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Yeah, you could well be right about that!

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