Bitcoin’s rally is turning out to be bad news for Coinbase, the crypto trading app that has just confirmed some of its customers are seeing a zero balance across their Coinbase accounts. “Your assets are safe,” the firm assured the app’s users via a Status page on its website, adding that its team is investigating the issue and will provide an update shortly.
Likely, the app’s crash has to do with the recent demand for Bitcoin, the popular cryptocurrency that has surged to $60,000 — close to its all-time high last seen in 2021. The price of Bitcoin climbed in the wake of U.S. bitcoin spot ETFs, driving a 42% price rally this month. According to Reuters, this was the largest monthly gain the digital asset had seen since December 2020. As of now, Bitcoin is up above $61,448, or a 7.66% increase today.
The sharp rise has fueled renewed interest in apps like Coinbase, which allows users to buy, sell, and hold crypto products in a digital wallet. This rapid increase in demand, including from more casual crypto investors, could have contributed to the app’s current issues, though Coinbase has not yet identified a cause.
Users of the Coinbase app grew concerned on Wednesday as they logged in to find their accounts showing a zero balance, despite owning crypto assets.
Meanwhile, the company’s tech support channel on X (formerly Twitter) was replying to users with a set of standard troubleshooting steps, instead of acknowledging the problem is on Coinbase’s side — a now far too common problem with automated customer support accounts that seem to be disconnected from the larger organization’s ups and downs. The company has just now began to tell users it’s aware of the issue and working to resolve the problem quickly.
Coinbase’s own Status page was first updated at 9:40 AM PST to acknowledge it’s looking into the issue.
“We are aware that some users may see a zero balance across their Coinbase accounts & may experience errors in buying or selling,” the company wrote in a new post on X. “Our team is investigating this & will provide an update shortly. Your assets are safe.”
The issue arises at a bad time for Coinbase, when a number of more casual investors have returned to the crypto trading market only to find they have, seemingly, no assets.
Remarked one user on X, who shared a picture of a zero balance, “My mom called and asked me and mine was at zero also,” they said.
Developing….