A recent issue in the Coinbase system has prevented a number of Canadian investors (and also investors from other countries in fewer numbers) from withdrawing their funds. This led to frustration and concerns about the Coinbase software. The issue started on August 1 and it also affected Venezuelan users.
The spokesperson from Coinbase has told the media that the bug has already been identified by the team and is now solved at this time. According to the official statement, the mobile apps were not affected, only the web versions.
Blocked Withdrawals Caused Uproar
Many users were very angry at Coinbase for not letting them cash out. They took to social media to accuse the company of not offering a good service if you are in Canada or in one of the other affected countries. However, almost no one accused the company of exit scamming, something common in the market, which can clearly show how much confidence people seem to have on Coinbase.
During a recent case with WEX, users were also unable to withdraw and this leads a lot of them to cry exit scam and to believe that some shady deals were happening involving the company. Up until the time of this report, it is still not clear what reasons lead WEX to shut down its withdrawals and if they were really what the company told the public.
It can be a proof of the reputation of Coinbase that people did not actually believe that the company would steal from them. This can be a sign that some institutions in the crypto space have already been legitimized to a point in which they are considered to be trustworthy by their public.
This can be, in part, because Coinbase thrives to always be compliant with legislation and to allow regulators to see transparency in the company. While they may have lost some users, it does not look like the Coinbase reputation was really stained by this technical failure.