A Coinbase ‘Temporarily Disabled’ message is preventing users from making sales on the app, with USD purchases no longer going through for users trying to buy Bitcoin (BTC). Users are receiving a message that reads: “USD purchases are temporarily disabled,” informing them that they won’t be able to make transactions on the app. It is also being reported that transactions can’t be made in other currencies, such as GBP.
Why are Coinbase sales temporarily disabled?
Coinbase has yet to release a formal statement regarding why it is preventing purchases on the app. It has been experiencing performance issues this week due to an increased amount of interest, with the price of Bitcoin rising and many looking to buy the cryptocurrency as a result.
The GameStop effect has completely upended the crypto market now. There’s a big Twitter-led $btc pump happening today and Coinbase — basically the Robinhood for entry-level crypto trading — has frozen USD purchases. Just tested it myself. pic.twitter.com/xpJCQjA0uh
— Ryan Broderick (@broderick) January 29, 2021
However, as this issue is taking place at the same time as trading apps also limiting the purchases of highly popular stock such as GME and AMC, many users are concerned that the same is happening with Coinbase and Bitcoin, too. That Coinbase’s error message states that purchases are disabled have led some to question if this is a decision made on behalf of the app, or is still related to the previous performance issues.
Why is Coinbase not letting me sell?
Coinbase users are experiencing an issue with selling due to either the app’s performance issues or a potential move on its behalf to restrict purchases or sales.
Without an official statement from Coinbase, it is difficult to know if this is a technical fault or if it is following in the footsteps of Robinhood and other trading apps, which notably prevented users from trading their stocks due to the volatility of the market.
As a result of Robinhood’s decision, a user filed a class-action lawsuit against the company while others bombarded its Google Play Store and App Store pages with negative reviews. It also led to bi-partisan condemnation from political and business figures such as AOC, Ted Cruz, and Elon Musk.