On 10th August, Coinbase, one of the leading cryptocurrency exchange platforms in the world, announced that Coinbase Pro has identified a problem in the BTC/USD order book because of which the pair was unavailable for trading on the platform for hours at a stretch.
The halt of the trading has led to a state of distress among the platform’s customers and it could have also resulted in customers incurring a loss as it affects the Bitcoin market.
Coinbase Pro on Twitter announced:
“[status] Investigating: We are currently investigating issues with trading on the BTC-USD order book.”
Coinbase Global Digital Asset Exchange [GDAX] product was split in two, Coinbase Pro and Coinbase Prime. Coinbase Pro mainly focuses on individual traders and Coinbase Prime focuses on institutional investors.
Coinbase Pro order book refers to the current orders on the exchange platforms. Customers buy and sell order for a particular cryptocurrency along with its respective pair. Users can also see the value at which the cryptocurrency is being purchased and sold at real-time.
The exchange platform stated that they identified the problem which was stopping the customers from trading on BTC/USD and were working on solving the issue. After which, the platform stated that they cleared the BTC/USD in order to solve the problem. The platform further stated that they cleared all the resting orders on the order book and that they would be in cancel mode until they finish investigating the problem.
Coinbase announced that the BTC/USD order book did not have the sufficient liquidity which was required to enter the limit-only mode. This was the reason for the clearance of the book and the platform is expecting to re-open the book at post-only mode at 4:00 p.m UTC. The post-only mode is set to remain for a minimum of 10 minutes.
Lauwie, a Twitterati said:
“OMFG how strange, you clear the whole damn book and then complain about not enough liquidity. How u expect people putting money up now”
Ulrico, the CEO of Wearedeepvr said:
“This is INSANE! You need to be covering your customers for this, I can’t even imagine how many people were mid-trade. Now another 8.5 hours delay? Insane and totally unprofessional.”
Dan G, another Twitterati said:
“How do you not have primary/standby systems? See this in crypto a lot but as an exchange with institutional aspirations it makes no sense.”
Goodytwo3, a Redditor said:
“Yes, hard to believe Coinbase is supposed to be so instrumental and this has been going on for so long without much uproar. WTF do we do if we want to trade right now? Complete BS from one of the market leaders!”