Key Highlights:
- Users report waiting over 14 hours for SOL transactions on Coinbase.
- Critics claim Coinbase might be staking users’ SOL deposits without their consent.
- Customers want Coinbase to show clear evidence of its liquidity.
- Developers blame Coinbase’s systems for struggling with Solana’s speed.
Coinbase is catching heat from its users after severe delays were reported in processing Solana (SOL) transactions. Some customers said their transfers were pending for more than 14 hours, while others had transactions canceled entirely after waiting a full day.
https://twitter.com/WooMingDeng/status/1881439174705987619
One user summed up the frustration, calling the situation “unacceptable,” especially for a platform as large as Coinbase. These delays have sparked concerns over Coinbase’s operational practices and whether it has enough liquid assets to fulfill customer requests.
Is Coinbase Staking Customer Funds?
A growing number of users are speculating that Coinbase might be staking their SOL deposits without informing them. This practice would allow Coinbase to earn rewards from staked tokens, but delays could arise if the platform has to unstake tokens before users can withdraw them.
https://twitter.com/CoinbaseSupport/status/1881624071172935884
One user commented:
“They’re probably staking our SOL to earn extra, but now they’re stuck trying to unstake it when we want to withdraw. If true, this isn’t okay.”
This controversy comes at a time when trust in crypto exchanges is still recovering from the fallout of the FTX collapse, which exposed a lack of transparency in how exchanges handle customer funds.
Users Demand Proof of Reserves
In light of these delays, users are calling on Coinbase to provide Proof of Reserves (PoR) — a public audit showing that the exchange has enough assets to cover all customer deposits.
Blockchain tracker Whale Alert recently flagged large SOL transactions heading to Coinbase from unknown wallets. One notable transaction involved 567,000 SOL (roughly $130 million), raising further questions about Coinbase’s liquidity.
https://twitter.com/cryptobravo99/status/1881319116830830785
Adding to the speculation, crypto commentator CryptoCurb called out Coinbase on social media:
“If Coinbase is staking our SOL without asking, that’s a big issue. We need Proof of Reserves immediately to confirm they’re solvent.”
Coinbase Responds, But Skepticism Remains
Coinbase Support addressed the delays, blaming them on “technical issues” and blockchain congestion. However, Solana developer Mert Helius believes the problem lies with Coinbase’s systems, not Solana.
“Solana isn’t the issue here,” Helius explained. “It looks like Coinbase’s internal infrastructure can’t handle Solana’s high-speed transactions.”
Meanwhile, other users noted that Coinbase’s largest Solana validator is set to unstake 567,000 SOL, possibly suggesting that the delays are tied to liquidity concerns.
A Broader Pattern of Concerns
This isn’t the first time Coinbase’s practices have been questioned. Recently, BlackRock made changes to its Bitcoin ETF filings, asking Coinbase to prove its custody of Bitcoin assets. Similarly, Coinbase’s recent launch of Bitcoin-backed loans for USDC has drawn mixed reactions.
As calls for transparency grow louder, Coinbase will need to act fast to regain user trust. Whether this involves Proof of Reserves or improved infrastructure, customers are expecting answers — and soon.