While trading is being restored, all Coinbase markets have been placed in “Cancel Only” mode, allowing users to revoke existing trades.
Some Coinbase users have been unable to transact on the platform, with others facing slower services after AWS overheating disrupted its services.
While Coinbase has assured customers their funds are safe, many of them were still dealing with failed access and transaction delays at the time of this writing.
Here’s What Happened
According to the Coinbase status page, the issue was first noticed at around 18:06 PDT on May 7, with the platform stating that it was aware some of its customers couldn’t transact on the exchange. It also confirmed that the team was investigating the issue and would provide more updates as they became available.
A few minutes later, Coinbase reported that it had identified the cause of the degraded performance, and it was due to an AWS outage, further reassuring users that their funds were safe.
It then indicated that it had started the process to “re-enable trading” on its markets, but that until trading was restored, all markets would be in “Cancel Only” mode. The crypto firm had earlier noted issues affecting Solana sends and receives, as well as delays for ALEO transactions, right before everyone else was affected.
Some Context Behind the Outage
As some users noted on social media, the outage has come right after Coinbase announced it was cutting its global workforce by 14%, citing both crypto market volatility and the growing role of AI in its operations.
According to CEO Brian Armstrong, AI is allowing smaller teams to accomplish what required far more people in the past.
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Coinbase’s reliance on third-party cloud infrastructure like AWS is not unusual for crypto exchanges of its size, but outages of this length often draw attention to the risks that come with dependency.
