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- A Coinbase user has been warning traders on the X platform that the publicly traded company is limiting Bitcoin (BTC) withdrawals.
- A Coinbase spokesperson has debunked this claim in spite of the exchanges facing technical hiccups on October 23.
As Bitcoin (BTC) breaks above $34,000 following a more than 10 percent surge in the last 24 hours, a part of the community is seemingly looking to stop the rally in its stride. A crypto trader going by the name @thecolinbrown on the X platform (formerly Twitter) has warned that Coinbase is limiting Bitcoin (BTC) withdrawals on its platform. According to his claim, Coinbase has implemented a policy that is limiting him to a maximum of $5,000 a week. He further called on users of the exchange to withdraw their coins to protect themselves.
This is a huge accusation on one of the leading crypto exchanges and the only publicly listed crypto exchange in the world. With this accusation coming in the wake of the FTX crypto exchange collapse; a case that has seen customers lose billions of dollars, the crypto community has not taken the claim lightly.
Related: Shockwaves in Crypto: FTX Founder’s Trial Reveals Desperate Search for Missing Billions
The post by the user has gained a lot of traction which could suggest some truth to it. At the time of press, the post had more than 500 retweets and over 2,000 likes.
. @Coinbase is limiting bitcoin withdrawls. I just tried to send BTC from Coinbase to my cold wallet, and encountered a NEW $5k/wk withdrawl limit policy (implemented 10/13). I've been a Coinbase customer for 10 years. GET YOUR BITCOIN OFF EXCHANGES!!!!
— Colin Brown (@thecolinbrown) October 23, 2023
With Coinbase quick to quell any concerns, a spokesperson of the exchange has responded to the claims. Speaking to a leading media outlet, the spokesperson stated that the claims were “inaccurate” and “Withdrawing from Coinbase will be dependent on the payment method you are using to withdraw.”
However, the claim came around the same time that Coinbase was experiencing some technical issues. As confirmed on the exchange’s official status page, the platform was experiencing difficulties processing trades around 6 p.m. UTC on Oct. 23. This coincided with a BTC price explosion and trading frenzy. The problem was however resolved within an hour with all operations going back to normal.
Related: Base Layer 2: Coinbase’s Transparency Push Ignites Collaboration on Ethereum
It is important to understand that although the claim might have been in an effort to drive fear, cause damage to Coinbase’s reputation, or drag BTC prices down, it draws attention to self-custody. A common Bitcoin mantra “Not your keys, not your Bitcoin” sums up the importance of self-custody.
In addition, to ensuring the security of tokens from exploitation and fraud, removing tokens from exchanges leads to price stability as investors are less likely to act irrationally when prices react dramatically.
