- Coinbase’s SOL transaction delays raise questions from the community
- The issue led to investors demanding a reserve audit on the exchange
- Coinbase CEO has opposed Proof of Reserve audits in the past
A recent issue with SOL reserves on Coinbase has led the community to question the exchange’s reserves and its ability to handle multiple transactions.
The issue began on January 19 after reports arose that the transaction time involving SOL tokens had exponentially grown. Several customers have openly complained on Twitter, claiming that transactions have taken several hours to send or receive $SOL tokens.
Some clients revealed that their transactions were on hold for over 48 hours, with another portion of investors complaining that after over a day of waiting the trade was inexplicably canceled.
Coinbase Users Bash Coinbase
This issue led to the community trying to figure out why the exchange was not able to handle the surge in SOL transactions.
The platform malfunction led to some users online cogitating the possibility of the issue being related to the reserve of SOL being staked. However, it is important to note that these are merely user speculations and there have been no reports of such kind.
Another theory by CryptoCurb on Twitter is that Coinbase’s SOL reserves could be insolvent—which led to clients demanding the company perform a “Proof of Reserve” audit.
Coinbase’s CEO Brian Armstrong has openly opposed the idea in the past. In a Tweet in September of the last year, Armstrong claimed the reason for not performing such an audit was that the company’s institutional clients would not want “people dusting all their addresses”.
Moreover, Armstrong also reminded us that — as a public company — Coinbase goes through Deloitte audits yearly. Back on the insolvency topic, there are also no reports that the company is insolvent, only users’ accusations.
Coinbase Clients Missing out on $TRUMP Token Rush
Coincidently or not, the overwhelming interest generated by the new Presidential memecoin has coincided with Coinbase’s technical issues. Given that the $TRUMP coin is SOL-based, it could create an explanation as to why users are facing difficulties in trading SOL.
Interestingly, the Solana Network itself hasn’t seen such delayed transaction times, indicating that this is indeed a Coinbase issue. In a reply to a customer, Brian Armstrong mentioned that the problem may be a scalability issue with the Coinbase infrastructure, as the platform wasn’t ready to hold so many transactions.
This issue may have led Coinbase users to miss out on the launch of not only the $TRUMP token but also the First Lady’s memecoin $MELANIA — both launched in the Solana Blockchain.
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