Coinbase Glitch Leads Users To Think They’d Struck It Rich

Topline

Users of cryptocurrency exchange Coinbase and crypto data provider CoinMarketCap received the surprise of their life on Tuesday afternoon when they checked their accounts and found enormous gains, leading some to believe they’d become millionaires, until the companies clarified on social media that it was a glitch.

Key Facts

Coinbase acknowledged on Twitter that some of its customers were seeing “inflated values” after social media users reported huge cryptocurrency gains that bumped their assets into the millions around 4 p.m. EST. 

Coinbase said the malfunction was a display issue only and had not impacted trading — it said resolved the issue on the website at about 5:30 p.m. EST and on its Coinbase Wallet app at around 6:30 p.m. EST.

CoinMarketCap said on Twitter it also resolved “incorrect price information” on its website.

Both companies did not say what caused the issues, and Forbes has reached out to them for comment.

Key Background

This comes one week after some Coinbase users launched a campaign to force the company to issue refunds after a glitch in the system in mid-November reportedly locked some customers out of their accounts, preventing them from trading for weeks. Other cryptocurrency platforms, including Binance, have also had trading issues. In November, the platform prevented some users from withdrawing dogecoin, which prompted Tesla CEO Elon Musk to challenge the company, saying investors “should be protected from errors that are not their fault.” Binance said the glitch was due to an “issue with the latest doge wallet.” Binance is also facing arbitration proceedings from hundreds of users who are seeking damages after a glitch locked them out of their accounts in May and prevented them from making trades.

Big Number

16%. That’s how many Americans say they have invested in, traded or used cryptocurrency, according to a November Pew Research study.

Tangent

Cryptocurrency prices rose on Tuesday, with Bitcoin increasing by 2.56%, solana increasing by 2.58% and dogecoin jumping up 17.03%, according to CoinDesk.

Further Reading

Crypto Outlook 2022: What You Need To Know (Forbes)

CryptoCodex: Bitcoin, Ethereum, Solana, Cardano And XRP Braced For 2021 Santa Rally After Crypto Price Crash (Forbes)