Coinbase experienced the highest net output of Bitcoins (BTC) in years following the recent service drop. Even Nassim Taleb has left the nest.
The Black Swan
The interruption on June 1 occurred during the traffic surge when Crypto Cash was trying to break through the $10,000 resistance level. Similarly, with the fall of BitMex a few months ago, this caused a lot of frustration among its user base. A few days later, one of its most famous users, the author of „Black Swan„, Nassim Taleb, left the exchange.
The Coinbase exchange was taken offline due to a 5-fold traffic spike during the Bitcoin upload
Users punishing Coinbase?
On June 7, Coinbase users withdrew 22,000 more Bitcoins than they deposited, worth $214 million. According to Glassnode data, only once in history did Coinbase see a higher net withdrawal: July 28, 2017, when the outflow was 22,500 BTC. The price at that time, however, was USD 2,785. Therefore, denominated in dollars, it was a much more modest event, with only USD 63 million in Bitcoin withdrawn from the exchange.
The last time this happened, BTC made $4,000
Bitcoin Balances Coinbase & All Exchanges
BitMex has been losing Bitcoins since Black Thursday
Coinbase still has about a million Bitcoins, more than any other exchange. Therefore, this latest incident may have a negligible impact on your bottom line. However, given how BitMex lost its leadership position, it’s recommended that Coinbase fix its scalability issues so as not to further alienate its users: Black Swans appear when you least expect them.