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Users punish Coinbase for failures by withdrawing a record amount from BTC

June 9, 2020

Coinbase had the highest outflow of net bitcoins (BTC) in years after the recent service downturn. Even Nassim Taleb has left the nest.

The black swan

The June 1 interruption occurred during the surge in traffic when Bitcoin tried to overcome the USD 10,000 resistance level. Similarly, given the BitMex crash a few months ago, this caused great frustration among the user base. A few days later, one of its most famous users, the author of “Black Swan”, Nassim Taleb, task the exchange.

Coinbase Net Bitcoin flows

Users punish Coinbase for failures by withdrawing a record amount from BTCUsers punish Coinbase for failures by withdrawing a record amount from BTC

Bitcoin network flows at Coinbase. Source: Glassnode

Users who punish Coinbase?

On June 7, Coinbase users withdrew $ 22,000 more than they deposited, worth $ 214 million. According to Glassnode data, Coinbase has had a larger net deduction only once in history: on July 28, 2017, when the outflow was 22,500 BTC. However, the price at the time was $ 2,785. As a result, it was a much more modest event on US dollars, with only $ 63 million in Bitcoin withdrawn from the exchange.

Bitcoin balance Coinbase  all exchanges

Bitcoin balances on Coinbase and all exchanges. Source: Glassnode

Coinbase still has almost a million bitcoins, more than any other exchange. Therefore, this recent incident can have a negligible impact on your bottom line.. Given how BitMex has lost its leading position, Coinbase is recommended to fix its scalability issues so as not to further alienate its users: black swans appear when you least expect them.