Coinbase Experiences Delays in Solana Transactions Amidst Liquidity Concerns
Coinbase is facing criticism for delays in processing Solana (SOL) transactions, with some users reporting wait times over 14 hours. Concerns revolve around the exchange's liquidity and operational practices, with speculation that Coinbase may be staking users' SOL without consent, causing delays due to unstaking processes.
- Users have experienced pending transactions for over a day, with one journalist noting a transaction canceled after 24 hours.
- Calls for Proof of Reserves (PoR) have increased, urging Coinbase to prove its solvency following the FTX collapse.
- Whale Alert identified large SOL transactions from unknown wallets to Coinbase, raising further liquidity concerns.
- Coinbase Support attributed delays to technical issues, while industry insiders suggest infrastructure challenges in handling Solana’s fast transaction speeds.
- The largest Solana validator for Coinbase plans to unstake 567,000 SOL, valued at approximately $130 million, leading to questions about liquidity.
- Previous scrutiny on Coinbase's custodial practices has emerged, linked to BlackRock’s amended Bitcoin ETF filing, which noted withdrawal processing requirements.
- Coinbase launched Bitcoin-backed loans for USDC amidst these controversies, but ongoing delays have raised doubts about transparency.
Users are demanding clear evidence of Coinbase’s financial health and operational integrity.