Coinbase vs fake news? It is possible to say that since the FTX affair, confidence in exchanges has very clearly been revised downwards. But from a purely ideological point of view, this state of affairs is ultimately not alarming. Because the principle of self-preservation of cryptocurrencies remains a central point of this ecosystem. However, it may be wise not to panic too quickly as soon as a user feeds the machine. FUD. A situation to which the Coinbase platform apparently just coped. In question, an alleged limit of $5000 per week imposed on bitcoin withdrawals. Explanations…
Coinbase accused of limiting BTC withdrawals
Coinbase is not escaping the regulatory crisis hitting platforms dedicated to cryptocurrencies. A situation at the origin of palpable tensions between the founder of this exchange made in the US, Brian Armstrong, and the Securities and Exchange Commission (SEC) of the United States.
With the direct consequence, a strategic move in progress of some of its services towards more welcoming horizons such as Asia’s crypto hub located in Singapore.
However, the crises to be managed by this major exchange can also come from within. This even – or even more so – because of the notable impact of the bear market on its spot volumes, down 50% over the past year. A situation causing a certain distrust on the part of users who have been stressed for too long.
In fact, an Internet user has issued a warning on the X network, there are less than 24 hours, with enough exclamation points and capital letters to kill an investor with too fragile a heart. In question, the impossibility mentioned by Colin Brown from withdraw more than $5000 during the week. An option according to him put in place by Coinbase since October 13:
“Coinbase limits bitcoin withdrawals. I just tried to send BTC from Coinbase to my cold wallet and encountered a NEW $5000/week withdrawal limit policy (implemented 10/13). I have been a Coinbase customer for 10 years. WITHDRAW YOUR BITCOIN FROM EXCHANGES!!!! »
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Coinbase offers a “pretty absurd explanation about algorithms”
The problem ? This publication quickly achieved great (too much?) success. In fact, she was viewed more than 250,000 times on the X network, with several hundred retweets in just a few hours. Because panic always spreads much faster than denials. To the point of having alerted crypto researcher Chris Blec to ask – what a good idea – if “someone else (could) verify this?” »
At the same time, Colin Brown certainly benefited from the success of his alarming publication. Because he was obviously contacted by technical support of the Coinbase platform yet reputed to be reactive. And according to the information obtained, he would have benefited from a “fairly absurd explanation on the algorithms” justifying accidental blocking of funds. Which didn’t calm him down…
“Self-custody must be a defended principle of Bitcoin. What if you all hadn’t amplified my tweet? Would I have been sentenced to a limit of $5000/week to slowly recover my BTC? »
Coinbase faces fake news
For its part, the Coinbase platform responded to this attack through an official spokesperson. In fact, the latter would have declared to crypto media CoinTelegraph that Colin Brown’s allegations are simply ‘inaccurate’. Because this type of limitation would not exist.
As the Coinbase spokesperson explains, withdrawals depend on “the payment method used to remove”. And all this is explained in detail on the account limits and withdrawals page. Knowing that at the time of the events, a maintenance operation could lead to “errors during slower loading times”.
It therefore seems that panic has once again struck in the cryptocurrency ecosystem. A sector where the few investors and users still present remain very suspicious of exchanges. At the same time, the Coinbase platform says it is resolutely optimistic about the upcoming approval of spot Bitcoin ETFs. Because this hoped-for momentum could revitalize a crypto market that has been slow for too long.
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