GDAX Announce Full SegWit Support, Network Fees Continue to Fall

GDAX, the trading arm of cryptocurrency brokerage Coinbase, announced today that they will implement full SegWit support for Bitcoin transactions in the coming days. The protocol upgrade aims to make transactions quicker and cheaper for users of BTC.

GDAX Joins Coinbase and Bitfinex

GDAX are the latest of the cryptocurrency industry’s major players to offer support for SegWit. They follow their parent-company Coinbase and Hong Kong-based exchange Bitfinex in rolling out the upgrade. GDAX made the announcement earlier today via their blog:

“We are excited to announce that GDAX now supports Segregated Witness (SegWit) transactions on the Bitcoin network. Over the coming days, full support for SegWit transactions will be rolling out to 100% of our customers. SegWit is a critical step forward in the development of Bitcoin and we are thrilled to support it on GDAX.”

The post went on to explain how the SegWit (or Segregated Witness) upgrade works. Put simply, the transaction data is split using SegWit. This makes it possible to only store necessary transaction data on the blockchain. With transactions requiring less information be included on-chain, more of them can fit into each block. This, in turn, reduces the need for users to increase their transaction fees. Previously, when the blockchain was full, users would be required to use a large fee if they wanted the network to validate their transaction before others also waiting. This forced users to continually increase their fees until they reached the point where some declared the network as “broken“.

Later in GDAX’s post, they state that the address format that they will use will be compatible with all existing BTC addresses. All withdrawals from GDAX will, therefore, be sent using SegWit.

The company are careful to point out that the new format will no longer be the same as Bitcoin Cash (BCH) addresses, however. This means that if BCH is sent to GDAX’s BTC address, the funds will be lost forever. To reduce the likelihood of this occurring, an additional warning will be displayed when making deposits to the exchange. It will read:

“Only send Bitcoin (BTC) to this address.

Sending any other digital asset including Bitcoin Cash (BCH) or Tether will result in permanent loss of funds.”

GDAX go on to state their commitment to providing customers with the latest Bitcoin upgrades. They claim to be currently working on additional scalability improvements to help further reduce fees and increase the network’s capacity. These include “transaction batching and UTXO management.”

Finally, GDAX are appealing to anyone interested in working on scalability protocols such as the Lightning Network to contact them. They are currently hiring staff in New York, London, and San Francisco.

Since the announcement earlier this week that both Coinbase and Bitfinex have also implemented SegWit transactions, transaction fees on the Bitcoin network have fallen to historic lows.

Evidently, SegWit is helping to ease congestion on the Bitcoin network and this in turn is restoring the original cryptocurrency’s usability. As additional companies and wallet providers begin to integrate the upgrade, and more scaling techniques become available, the utility of the Bitcoin network is only set to grow.

Subscribe to our newsletter

It has been a pretty interesting day for cryptocurrencies. More specifically, the Bitcoin Cash price is going bonkers right now. This is mainly due to GDAX and Coinbase enabling Bitcoin Cash support. As was to be expected, this momentum caused some sort of issue. The company decided to suspend all BCH trades for a while after mysterious riders showed up on the site. Buying Bitcoin Cash for over $9,000 is rather odd.

It was a matter of time until Coinbase decided to add Bitcoin Cash. Support for this altcoin has been rumored for some time now. With GDAX enabling BCH trades too, things will get very interesting moving forward. That is, assuming the company can keep their trading operation going. Trading across both platforms has been halted temporarily as we speak. It is a bit unclear as to why this has happened. According to GDAX, trading will be resumed later today at 9 AM PST. A brief reprise may be a good thing for markets to calm down.

Bitcoin Cash Trading Momentum Causes Some Issues

More specifically, there has been some interesting trading momentum for BCH. It became evident some people might attempt to manipulate the order book. Buying Bitcoin Cash for $8,000 and more is well over the market price. Several of such orders were created and filled. It is possible Coinbase and GDAX may reverse some of these trades moving forward, though. After all, a lot of people made and lost money in a very suspicious manner.

Although none of these orders went through for vast amounts of money, it is evident something doesn’t add up. While the initial excitement was to be expected, so was the attempt to manipulate things. It only took just over an hour before things got out of hand. No one can deny cryptocurrency users are always looking for ways to make money in one way or another.  This incident is unfortunate, but it seems the situation will be rectified pretty soon. Significant volatility is always normal, but such wild swings are rather uncommon.

For now, none of this affects the Bitcoin Cash price in any way. The popular altcoin has set another new all-time high even before trading began. Full support for BCH is still the plan for both Coinbase and GDAX. The big question is whether or not they will add other currencies in the near future. It is evident there are plenty of other currencies which could benefit from such exchange support in the future.

Crypto-industry giants Coinbase announced earlier today that they have done away with their unpopular policy of making buyers wait to receive their cryptocurrencies. In a blog post this afternoon, director of communications David Farmer explained that many customers in the US funding purchases directly from their bank accounts would now receive coins instantly. He wrote:

We are excited to announce the ability for customers to instantly purchase digital currency using a U.S. bank account. Previously, customers who purchased using a bank account had to wait several days before receiving their digital currency. Customers can now buy up to $25,000 and receive access to their digital currency immediately.

The waiting period that Farmer describes was due to lack of assurances that customers indeed had the funds they said they did in their accounts. Zach Abrams, Head of Product at the San Francisco exchange describes how the company have been working towards allowing instant purchases for some time:

Coinbase uses proprietary fraud prevention systems it has developed over the last 5 years, to determine how this instant purchase feature is rolled out to groups of customers and that the customers with access to this feature have sufficient balance in their bank account with good purchase history.

Whilst the company did previously offer a real-time trading option in GDAX, many customers found the professional and complex platform daunting, and as such casual traders are put off from using it. What’s more, although crypto purchases on GDAX are instant, the account still must be pre-funded, and this too can take days.

Today’s announcement to extend instant purchasing to users of the standard Coinbase service will likely excite those wishing to trade casually. It should also help alleviate the frustration of having funds locked up in an asset with which customers can do nothing with for several days. It was an oft-repeated complaint of Coinbase customers who had purchased cryptocurrency only to see the value crash soon after leaving them no option but to hold, even if they wanted to sell it on quickly before a small loss became a big one.

The decision is likely to impact those cryptocurrencies which users of Coinbase can purchase using the platform. These are Bitcoin, Ethereum, and Litecoin. It’s likely that the move will result in even greater liquidity in the market, and this in turn will send prices even higher. We’ve already potentially seen some evidence of this in action. The price of Litecoin experienced 12% gains earlier today at around the time of the announcement.


Things have started to somewhat unravel for Ethereum as of late. The network is slowing down to the influx of ICOs. Moreover, it now appears the GDAX exchange ad to halt ETH trading for quite some time. Interestingly enough, the platform also saw an ETH price flash crash last night. It is evident the market is making its voice be heard. The bigger question is how things will play out for Ethereum moving forward.

Ethereum Woes Continue

Ethereum holders are getting quite antsy right now, for obvious reasons. The network is suffering from issues for quite some time now. The recent multi-million dollar ICOs are causing major transaction issues. It will take several days, if not weeks until the network goes back to normal. Even yesterday’s Civic ICO was problematic to get into due to the Ethereum network slowing down several times. It is evident something will need to change in this regard.

To make matters even worse, the GDAX exchange had issues with Ethereum as well. Multiple exchanges froze ETH trading yesterday afternoon. GDAX joined that list last night, as the ETH-USD market show some unusual developments. More specifically, some trader[s] successfully flash crashed the price to double digits. That is rather unusual, to say the least. It was not a graphical glitch on the charts either, as some people buy orders were effectively filled.

GDAX Has an Ether Fire Sale

It is good to see GDAX investigate this issue, though. This does not mean some orders will be rolled back. Margin traders have lost a tonne of money due to this flash crash, that much is evident. A rapid price movement in a fiat currency-linked trading market is very unusual. Once the issue was reported, GDAX halted all margin funding for this pair. Additionally, the company was forced to halt ETH/USD trading altogether shortly after. It took a few hours to resume the service, though. Right now margin funding is still disabled for this market.

A lot of people are not too happy about this recent string of developments. With the Ethereum network slowing down, ICOs being “elite partners only” clubs, and exchanges halting ETH trading, things are not looking all that great. Finding a solution for all of these problems will be quite challenging. It is evident Ether is not a store of value. Nor is the Ethereum ecosystem “better’ at scaling than Bitcoin. It will be interesting to see how things will play out over the coming months.

It doesn’t happen often bitcoin exchanges cause a massive price glitch. For some reason, the GDAX exchange briefly listed bitcoin at US$0.06 per BTC. This event occurred right after the exchange came back from scheduled maintenance. Luckily, this price drop did not affect global bitcoin trading all that much. During times like these, it is good such a problem occurs on a smaller exchange.

Cheap Bitcoins At GDAX

A lot of traders were surprised last night when looking at the GDAX bitcoin price chart. During a brief moment, the BTC/USD price dropped by 99.9%. Keeping in mind how this trade revolved around 100 BTC in volume, there was a brief panic among traders. As a result, bitcoin was valued at US$0.06 before returning to its normal price. A rather interesting event, to say the least.

It is worth noting GDAX had undergone scheduled maintenance just prior to this incident. However, rather than waiting for order books to be depopulated, market executions were resumed immediately after. That allows for traders to buy and sell bitcoin at unprecedented rates. In this case, those who scooped up bitcoin at US$0.06 will be more than pleased. None of the other bitcoin exchanges emulated this price behavior, though.

One thing to keep in mind is how this drop affects the weighted bitcoin average. A lot of websites use GDAX to compute futures index prices. Such a drop to US$0.06 messes up the index quite a bit, to say the least. As a result of the drop, the bitcoin price index briefly dipped to US$888.48. Unfortunately for BitMEX users, some positions have been liquidated in the process. The exchange will refund all affected users, though.

It is evident glitches like these can occur at any given time. It remains unclear why GDAX did not repopulate the order book before resuming trading, though. It is possible this is just a one-off event, although it is worth keeping an eye on moving forward. Futures exchanges using average prices for their index will be affected by these incidents if they ever occur again. Moreover, if this problem repeats itself, the bitcoin price may effectively go down as a result.

Header image courtesy of Shutterstock

It is apparent the GDAX exchange is looking beyond bitcoin to further establish its presence. While giving users an option to buy and sell bitcoin is a great step, it is only part of the company’s agenda. As of yesterday, the company added support for Ether trading in New York state. An intriguing development, that much is certain.

GDAX Is one of the few companies with an active BitLicense. The State of New York introduced this regulatory requirement some time ago. However, since its inception, very few companies have actively received their BitLicense. That being said, having this license allows GDAX to slowly expand its cryptocurrency trading presence in the area. Supporting bitcoin is only the first step along the way for whatever it is the company has planned.

GDAX Continues To Move Forward In New York

To be more specific, GDAX has enabled Ether trading in the State of New York. While it may sound strange the company issues a special announcement for this change, it goes to show New York remains a bit of an uphill battle. Cryptocurrency companies have to tangle with regulators to make sure everything is done according to the rules. Any victory in this regard deserves a special announcement, as brief as it may be.

As of yesterday, GDAX users can trade Ether against the US Dollar and bitcoin. It is possible additional trading pairs and currencies will be added over time. For now, the company has not hinted at such an expansion, even though it only appears to be a matter of time. Since Ethereum is not a direct competitor to bitcoin, it makes a lot of sense to offer support for both of these currencies.

This news also highlights demand for alternative cryptocurrencies continues to grow. Bitcoin’s market share of the cryptocurrency ecosystem continues to decline, which is not entirely surprising. In fact, bitcoin’s value is on the decline as well, although no one knows for sure what is going on exactly. Cryptocurrency holders are diversifying their portfolios with Ethereum and other currencies, that much is certain.

It remains to be seen how popular Ether trading will be in New York state, though. The region’s “opposition” to cryptocurrency is not a positive development. Then again, with companies such as GDAX making a positive impact, the ship can still be turned around. Given Ethereum’s popularity right now, interesting things are on the horizon for this exchange. The bigger question is whether or not they will enable support for additional currencies in New York state moving forward.

Header image courtesy of Shutterstock

Most of the big names on the internet, including cryptocurrency companies utilize cloud services offered by Amazon Web Services and Microsoft Azure. The increasing dependency on reliable service providers proved to be costly to numerous businesses across the world after the most used AWS S3 service crashed without warning.

The failure of S3 buckets pulled many websites, Bitcoin wallet services, and even IoT devices offline. A news media outlet has described the severity of the issue in a well-phrased headline reading that reads, “AWS’s S3 outage was so bad Amazon couldn’t get into its own dashboard to warn the world”.

The five-hour breakdown of service is said to have impacted online platforms like Trello, Travis CI, GitHub, GitLab, Quora, Medium, Signal, Slack, Imgur,, Razer, Adobe cloud, Zendesk, Heroku, Coursera, Bitbucket, Autodesk Cloud, MailChimp, Citrix, Expedia, Flipboard and more.

The Amazon S3 issue hit closer to home for the Bitcoin community after services like Coinbase, Xapo and others were disrupted. Even cryptocurrency news publications, including NewsBTC, suffered from the downtime caused by the outage.

According to the platform’s status report on Coinbase, the AWS S3 outage prevented many people from signing into Coinbase and GDAX. Users found their open orders canceled on GDAX and Coinbase. The platform also disabled transactions and merchant services until Amazon services were restored.

Those attempting to access their Xapo account were encountered with a message that said,

“Some Amazon Web Services are currently down, which is affecting our website. Don’t worry, your bitcoins are safe and we’ll be back up and running as soon as Amazon is…”

Amazon, through its AWS, has been working with blockchain startups for a while. It is still unclear whether other services in the domain were also affected directly due to yesterday’s S3 outage.

The risk of breakdown of internet services, similar to the issues faced yesterday by AWS customers will continue to remain as long as they rely upon centralized services. The future decentralized internet solutions may turn out to be the ideal solution for such issues.

Ref: The Register | Coinbase | Image: NewsBTC

The unexpected rise of Ethereum Classic, the original Ethereum blockchain without a hard fork has got few leading cryptocurrency exchanges considering its implementation into their platforms. Poloniex became the first cryptocurrency exchange platform to include ETC support, with few more expected to do so soon.

However, one platform that doesn’t want to jump into the ETC bandwagon right now is Coinbase. The leading US-based digital currency exchange platform has recently made it clear that the platform will not be supporting Ethereum Classic anytime soon. The announcement made on Coinbase’s GDAX twitter account reads,

“We wanted to provide some clarity to GDAX users who are concerned with the recent Ethereum hard fork. GDAX supports trading and withdrawals only for the ETH (Ethereum) network and currently does not support ETC (Ethereum Classic).

Customers are advised not to deposit ETC or any unsupported digital currency to GDAX.

For customers who had ETH balances on GDAX immediately prior to the hard fork on July 20, 2016:

  1. 100% of ETC associated with ETH balances at the time of the hard fork are secured in GDAX cold storage.
  2. We plan to allow withdrawal of an amount of ETC that corresponds to ETH balances at the time of the hard fork. We’ll be working on this feature over the coming weeks and will provide updates via this Twitter account.

ETC associated with ETH sent to GDAX after the hard fork is not supported by GDAX.

We currently do not have plans to support ETC trading on GDAX (although we are not philosophically opposed to any particular hard fork or coin). We will continue to monitor the situation and evaluate customer demand for new digital assets to add to the platform.”

However, Coinbase has not definitively said that it will not support ETC, which means that GDAX may still offer ETC support sometime in the future provided the cryptocurrency continues to trade profitably making headlines. On the other hand, the proposed delay in returning the ETCs associated with ETH balance has not been received well by some people in the cryptocurrency community. There are various comments on social media questioning the company’s ethics regarding this decision.

Screen Shot 2016-07-28 at 10.59.03 PM

As soon as Ethereum Classic started trading on Poloniex, there was a surge in trading which drove ETC price through the roof. The new digital asset ETC went on to become the fourth largest cryptocurrency for some time. Currently, Ethereum Classic holds the sixth position in terms of total market capitalization, below Ripple and Litecoin.

Leading cryptocurrency platforms like Kraken and Shapeshift have already expressed interest in including ETC support on their respective exchanges. If Ethereum Classic continues to perform well, then we can expect more platforms to include ETC support in the coming days.

Ref: GDAX Twitter | Reddit | CoinMarketCap |Image: Coinbase

Coinbase has been around long enough to make a name for itself. The digital currency wallet and exchange has so far been considered as a yardstick, against which all the exchanges and wallet services are matched. However, the leading digital currency wallet platform seems to be having some growing pains which has left a trail of disgruntled customers.

Since Coinbase announced the launch of its GDAX exchange platform, many users have started voicing their displeasure about their experience with the platform on various social platforms. GDAX is a cryptocurrency exchange where one can trade bitcoin and ether. As the company continues to work on integrations, KYC and AML processes, many users are finding themselves either having their account disabled or limits imposed on their activities. If that’s not bad enough, the customers seem to be having problems reaching out to the platform’s customer support team.

coinbase reddit

These complaints have started to show Coinbase in a negative light, especially at the time when industry experts expect the digital currency company to lead the Bitcoin revolution. According to few posts on leading social media platforms, the customer service has been unresponsive for weeks. Some of the users claim that the platform has asked for their documents multiple times in the past and still continues to do so, even after them submitting it every time in the past. Those who decided to comply with the company requests are finding themselves unable to do so on their mobile application.


gdaxThe new deposit and withdrawal policy on GDAX states that the users are allowed to make unlimited deposits into the platform, but when it comes to withdrawals, they can’t exceed $10,000 a day. The withdrawal limit includes both fiat and digital currency withdrawals, which can be quite challenging for those who do large volume trades or want to make legitimate transactions exceeding $10,000 from their GDAX accounts.

On the other hand, these may be few legitimate issues, faced by a company attempting to make some major upgrades to its operations. Also, with regard to the AML and KYC requirements, one can’t blame Coinbase for trying to play safe. However, the difference in withdrawal and deposit limits and blocking customers’ accounts may be a bit too excessive. In order to prevent a PR disaster, it is important for Coinbase to keep its customers constantly updated about the new developments and promptly respond to their queries to the customer support. If Coinbase doesn’t win its customers’ confidence, it may lose them to their competitors.

Ref: Reddit | Twitter | Image: Coinbase

Exciting times are afoot in the Bitcoin world on a nearly daily basis. Coinbase, also known as GDAX these days, has added support for PayPal (NASDAQ:PYPL) and credit cards to their platform. Buying and selling Bitcoin has never been easier or more convenient than it is right now.

Before people get too excited about the option to buy Bitcoin with Paypal shortly, that option will not be enabled just yet. Coinbase makes it clear they will let users buy cryptocurrency with a debit card, though. The PayPal option will only be usable to sell cryptocurrency,

Coinbase Expands Payment Options

The addition of Paypal to the Coinbase platform was only a matter of time, though. For all of its flaws, PayPal remains one of the most commonly used online payment services around the world. Having the option to convert Bitcoin to this more generally accepted payment method is a positive addition. Then again, actual Bitcoin aficionados will argue this does not benefit the adoption of Bitcoin payments by merchants.

Moreover, the PayPal cash out function will be limited to US customers only for the time being. Depending on how often this solution is used, and whether or not PayPal will flag user accounts for suspicious transactions, Coinbase may expand this functionality to other countries in the future. Moreover, the company has indicated their support for letting users buy Bitcoin with the online payment method in the future as well. No specific dates regarding expanding this functionality were announced at the time of writing, though.

Adding credit card support to buy Bitcoin is a significant move by Coinbase. The company had added debit card support several months ago, which has been quite a success so far. Convenience is a driving factor for consumers to buy Bitcoin, and the addition of credit card support should help boost cryptocurrency adoption in the coming months.

It is important to note that both credit card and Paypal support are currently in beta. Additional users will be invited over time to test these new services. Both payment options are added to the Coinbase mobile apps on iOS and Android as well, and can be found under the “Settings” menu.

Source: Coinbase

Header image courtesy of Coinbase