The prices of crypto listed on Coinbase Global Inc and the popular CoinMarketCap experienced an exceptional high on Tuesday. Many of the tokens showed an exponential gain in value making users wonder what happened.
A crypto-technology startup that creates technology for clearing and settling credit default swaps on the blockchain.
The two data providers tweeted a post on Twitter mentioning that the issue was resolved and trading will not be affected. Moments later Coinbase tweeted that asset prices and trading difficulties are under investigation in the Wallet. The Coinbase Wallet provides users with the ability to manage their crypto assets. None of the companies have mentioned what the cause of the problem was.
The founder of Bosonic – a platform related to the clearing and settlement of crypto – Rosario Ingargiola said. “Everyone tunes into those disruptions, so the extent they all use the same data source, and so when there’s a problem and prices are really off, that can create herd behavior to drive investment decisions.”
Glitch Causes Crypto Prices To Surge
Glitches in the system of various crypto networks have always been an issue. Oftentimes occurring when many exchanges are processing at the same time. The feature of anonymity that comes with cryptocurrency can serve as an issue at times like this. It makes it hard to resolve hacks and thefts because there is no need for personal information when making a transaction.
CoinMarketCap.com said, “we haven’t found any evidence yet to suggest that today’s glitch was caused by an external party.” Many people on Twitter were assuming that the site was hacked. In a tweet earlier this week, Coinbase said that certain clients were seeing inflated prices for “non-tradable” crypto assets. This occurred due to a display error. Customers were still posting screenshots of their profits and their suddenly higher balances on social media.
Meanwhile, certain users were commenting how they had a “heart attack” regarding the prices. People had joked that the rise in prices is where crypto will be in 2026.
Aaron Brown who writes for Bloomberg Opinion said that if this becomes a common occurrence people will go to other sites for data.