Coinbase and Kraken are both experiencing limited service due to the volatility in the markets. According to customers’ comments on Twitter, the exchange sites of Coinbase and Kraken were both inaccessible or having minor latency difficulties on November 8, amid volatility in the market. The announcement comes after it was revealed earlier in the day that cryptocurrency exchange Binance plans to purchase its competitor FTX.
According to users on Twitter, services were restricted on both exchanges, with difficulties linked to connectivity to the platforms and unsubstantiated reports of blocked withdrawals. The issues relating to connectivity to the platforms were causing problems.
According to Coinbase’s support profile, the company “experienced network connectivity difficulties for Coinbase.com, Coinbase Pro, and Coinbase Prime.” It’s possible that this will make logging in difficult.
Coinbase’s Support Tweet:
Kraken did not publish a statement on the difficulties through its public channels; however, the company did stress the fact that it employs proof-of-reserve audits, which enable customers to check balances maintained on exchanges as well as the company’s backed assets. An independent audit is carried out by a third party as part of the proof-of-reserves process to verify that a custodian really has the assets as reported.
Sam Bankman-Fried, founder and CEO of FTX, announced an “agreement on a strategic transaction” with Binance, which aims to acquire FTX after its decision to liquidate 23 million FTX Tokens, triggering a liquidity crisis at FTX. This announcement caused the market to become turbulent. Some people have referred to the transaction as a “chess move,” which implies that Binance operated in a manner that was deliberate and calculated in order to bring about the transaction.
Binance CEO Changpeng Zhao also said on Twitter that the exchange will soon begin employing proof-of-reserves, adding that “banks operate on fractional reserves.” This statement was made many hours after the transaction was completed. The halts in operation occurred within an hour of the announcement that Binance would employ the new system and resumed just as quickly when the announcement was rescinded.
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