Coinbase, a prominent cryptocurrency exchange in the United States, is currently facing a system-wide outage that has made its services inaccessible to users on desktop and mobile platforms. The exchange officially announced the outage on its status page, indicating a major outage that began at 4:15 am UTC on May 14. Users attempting to access the Coinbase website are met with a “503 Service Temporarily Unavailable” error message. Despite the disruption, Coinbase assured users that their funds are safe and that they are actively investigating and working to resolve the issue. This is not the first time Coinbase has experienced temporary outages, with a similar incident occurring on February 28 due to a surge in crypto trading activity.
The error message displayed during the outage commonly indicates that servers are either undergoing maintenance or experiencing overload, according to a developer guide from Mozilla. Coinbase Support has acknowledged the issue on social media and is working towards finding a solution. Some individuals in the cryptocurrency community view such outages as beneficial to the market, as heightened activity causing the downtime can contribute to a bullish narrative. While the duration and cause of the outage have not been specified by Coinbase, the company is expected to provide updates as they work to restore full functionality to their platform.
In a recent development, investment banking firm KBW increased Coinbase’s price target to $230, citing the exchange’s unique opportunity for investors to tap into the long-term growth potential of the crypto economy. KBW raised Coinbase’s price target from $160 to $230 while maintaining a market performance rating. Despite this positive outlook, Coinbase has faced regulatory challenges, with a lawsuit filed by the SEC against the exchange. Judge Katherine Polk Failla of the US District Court of the Southern District of New York ruled that the SEC’s lawsuit against Coinbase can proceed, stating that the allegations of operating as an unregistered securities exchange, broker, and clearing agency have plausible grounds.
The SEC’s case against Coinbase revolves around allegations of operating as an unregistered securities exchange, broker, and clearing agency, as well as engaging in the unregistered offer and sale of securities through its Staking Program. The court ruled in favor of the SEC, allowing the lawsuit to proceed. Kathryn Haun, a former Assistant U.S. Attorney and partner at Andreesen-Horowitz, has recently stepped down from Coinbase’s board. While Coinbase has faced regulatory challenges, it continues to be a major player in the cryptocurrency industry, offering users access to a wide range of digital assets and trading services. Despite the recent outage and regulatory issues, Coinbase remains a popular choice for users looking to engage in the crypto economy.
