The “Proof of Keys” Upcoming Event Makes Coinbase Pro Temporarily Halt BTC/USD Trading
A few hours back it was being rumoured on the internet that Coinbase Pro was experiencing trading issues on its BTC-USD order book. However, as soon as this news went mainstream, the folks over at Coinbase immediately took to Twitter to say that they had rectified the issue and that their exchange platform was back to its ‘live trading mode’.
While on paper this was a very basic problem, it now appears as though many of Coinbase’s hardcore customers are raising suspicions over the possible causes for this ‘so-called halt’. One theory circulating widely on social media is that the upcoming “Proof of key” event (that is all set to be held on the 3rd of January, 2019) could have had something to do with the aforementioned episode.
[status] Investigating: We are currently investigating issues with trading on the BTC-USD order book. https://t.co/xIjStLRlCw
— Coinbase Pro (@CoinbasePro) December 26, 2018
A Detailed Look Into The Matter
As soon as Coinbase Pro released the above tweet, many crypto enthusiasts all over the world took to different social media platforms to share their concerns regarding the safety of their funds. And even though the issue was rectified within an hour, Coinbase’s twitter handle was bombarded with messages that were highly suspicious of what was really going on behind the scenes.
In this regard, one customer noted that the stop in trade operations could have been due to the ongoing staff redundancy measures that the firm was pursuing. Similarly, some users were also quick to point out that the stoppage could have been done as a safety measure against the upcoming “Proof of key” celebration (that is being led by crypto evangelist, Trace Mayer).
For those not aware of the ‘proof of key event’, it is essentially a symbolic show of solidarity that is going to take place next week— wherein the crypto community as a whole aims to withdraw their digital assets from third-party wallet servers so as to move them into private storage solutions.
Don't Hold Your Breath: This Exact Same Thing Has Happened Before
At this point, it is worth noting that this is not the first time Coinbase Pro has taken such measures and stopped all of its trade operations (to rectify some issue with their platform). For example, earlier in August, the firm had released a tweet stating that it was making its BTC-USD trade feature unavailable for a small period of time (so as to correct a technical issue that the firm had incurred).
At the time it was reported widely that many people using Coinbase Pro were facing issues related to order cancellations and failed purchases.
While on the surface, the above mentioned problem does not seem like much, however, owing to the mainstream traction that the upcoming January 3rd event has been able to garner over the past month or so, it is quite natural that a halt in BTC trade (on a major exchange platform) will fuel suspicions amongst the global crypto community at large.