Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Crypto Exchanges => Coinbase => Topic started by: Hometown on September 04, 2022, 10:44:38 PM
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Whenever some major problem occurs with a crypto exchange, we will be reading about it everywhere the next day. This is not a good face for crypto exchanges, so they are always trying to not let the news get out but usually, they fail to do so. So it is surprising that today we are not reading about the things that went down on August 30, on Coinbase.
First reported by investfox.com, on August 30, Coinbase had a major technical bug that gave traders the opportunity to sell their cryptocurrencies for 100 times the price. This technical error occurred for those who used GEL (Georgian national currency) as their account currency. Traders who had crypto prices and their account balances displayed in GEL saw that their balances were showing astronomical prices.
So what exactly happened? Coinbase is a US-based crypto exchange that primarily uses USD as the currency on their exchange, but they also allow traders to display balances in different currencies for traders’ convenience. For this, they need to implement exchange rates of different currencies with USD, and that is where the problem occurred. On August 30, the average exchange rate of USD and GEL was 1 USD for 2.88 GEL, so if traders had 10 USDC in their accounts and wanted to sell it for GEL, they should have received 28.8 GEL following the exchange rate. But in fact, traders were able to sell 10 USDC for 2880 GEL.
Here we can easily see where the problem occurred. Coinbase had a technical error that caused the exchange rate of USD and GEL to be set as 1 USD for 288 GEL. This was not present for only USDC, but every single cryptocurrency on Coinbase was priced for 100 times more than the market prices.
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