Bitwise CIO: Coinbase Issues Don't Hinder Market Growth
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Read more: Coinbase Review: Top Trading Platform With Many Supported Features
Bitwise Chief Investment Officer (CIO) Matt Hougan drew parallels to Facebook‘s past technical woes, suggesting they didn’t impede the social media giant’s growth.
Hougan expressed support amidst user frustrations, highlighting that Coinbase’s history includes frequent crashes during bullish market periods, yet it still experienced remarkable growth. Comparing it to Facebook’s early days, he noted that despite recurrent crashes, the platform amassed billions of users.
Recently, Coinbase reported delays in customer support responses exceeding 48 hours due to high volume. This announcement followed Monday’s disclosure of Coinbase issues resulting in some users seeing zero balances in their accounts, echoing similar incidents amid Bitcoin‘s price spikes.
Hougan emphasized that these Coinbase issues primarily affect retail users, contrasting with institutional clients, whose custodial services for spot Bitcoin ETFs remain unaffected. He clarified that institutional operations and custody are separate entities, with most ETFs trading through diverse OTC counterparties, tapping into ample liquidity beyond Coinbase.
Coinbase notably serves as custodian for Bitwise’s spot Bitcoin ETF, BITB, which currently holds approximately $1.8 billion in assets under management, according to The Block.
The ongoing technical challenges at Coinbase prompt reflections on the resilience of cryptocurrency exchanges amidst escalating market activity.
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