Numerous Coinbase users are intelligibly disappointed after the company opted to put their accounts on hold for several weeks
Coinbase has lately been under pressure for a technical blunder that caused the closure of several of its customer's accounts.
Users had technical issues when seeking to acquire Japanese stable coin GYEN and Powerledger (POWR). The system response was then interrupted by an error. Extremely dissatisfied customers have now formed an online campaign seeking refunds.
A Coinbase user, Chris Flemming, has created an online petition criticizing the exchange named "Accountability for COINBASE GYEN account freeze," which has reportedly received 1,620 signatures. It states, “We as a whole recognize that mistakes happen and there is the potential for loss when investing in any cryptocurrency or asset. Though in this case, the losses came from internal technical errors of Coinbase.”
According to a CNBC report, Coinbase listed GYEN for the first time on November 10. Beginning around November 17, the coin got disconnected from the Japanese yen's price that it was supposed to follow. The token's value reached a high of 0.065643, which is more than 7.5 times what investors expected in fiat currency. As per the data, transfer activity on Coinbase rose on November 18 and peaked at $122 million.
It's uncertain how many clients were impacted, how much money was lost, or whether anyone gained by trading before the price dropped again. The currency is currently trading at the yen peg rate, as it was planned.
According to a Coinbase representative, the company will offer a packed explanation of what happened and how problems will be resolved.
The Nasdaq-listed exchange "will publish a blog article on the November 19 event involving GYEN and POWR assets in the coming weeks," as said by a spokesman. Both GYEN and POWR have restarted trading on Coinbase Pro, and withdrawals are now available on Coinbase.com.
Tesla CEO Elon Musk has proposed that cryptocurrency holders move their funds away from centralised exchanges to protect them. “Any crypto wallet that won’t give you your private keys should be avoided at all costs,” Musk added.