Coinbase Service Disruption: Everything You Need to Know About the AWS Outage
The October 20, 2025 AWS outage severely impacted Coinbase, exposing vulnerabilities in its Advanced platform and centralized infrastructure strategy. As Base tokens plummeted, the incident raised a critical question: can a crypto player advocate decentralization while relying solely on a single cloud provider? This incident sheds light on uncomfortable truths about the operational resilience of centralized exchanges against cloud computing giants.
Translated on October 21, 2025 at 11:19 by Simon Dumoulin
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Coinbase Outage: Over Two Hours of Service Disruption
The Coinbase team confirmed this morning disruptions to its Advanced platform, affected by AWS outages. The service, designed for experienced investors with sophisticated trading tools, suffered intermittent interruptions for more than two hours. This prevented the execution of critical orders in a market that demands rapid reactions.
The Coinbase status page displayed “normal” operation, while several key functions remained inaccessible, generating frustration and confusion among users. Engineers warned that further disruptions might occur, suggesting the problem could extend beyond AWS’s initial resolution.
For an exchange aiming to compete with Binance and strengthen its international presence, this operational vulnerability is concerning. Meanwhile, Binance and Kraken continued to operate normally, reinforcing their competitive advantage in a market where 24/7 availability is crucial for user trust.
Source: Coinbase
Theoretical Decentralization vs. Real-World Centralization
The irony hasn’t escaped the crypto community. Base, Coinbase’s Layer 2 blockchain meant to embody decentralized infrastructure, was undermined by its creator’s dependence on AWS services. The geographic concentration of servers and the absence of multi-cloud strategies contradict the fundamental principles of decentralization.
Since the outage began, the main non-stable assets on Base recorded declines: Synthetix dropped by 3.5% in one hour, while other tokens experienced more modest corrections. This correlation between Coinbase’s technical health and Base’s performance poses a strategic risk.
Coinbase must now consider how to build credibility for a decentralized blockchain when its infrastructure relies on a single point of failure. The solution might involve a multi-cloud redesign with geographic redundancy, the only guarantee to limit systemic risk and protect Coinbase’s reputation in the crypto ecosystem.
We are currently experiencing service disruptions on Coinbase Advanced trading.
Our team is actively investigating and working to restore service, which is being impacted by the ongoing AWS outage. We apologize for the interruption.
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