Coinbase Faces Backlash Over Solana Withdrawal Delays

Coinbase users have taken to social media to express frustration over delayed withdrawals of Solana (SOL) tokens, sparking speculation about potential insolvency.

On Jan. 21, crypto YouTuber Wendy O tweeted to her 412,000 followers:

“What’s the drama with Coinbase and Solana?”

Similarly, investor ‘Curb’ questioned Coinbase CEO Brian Armstrong, stating:

“After dealing with insolvency last cycle (FTX), we demand answers into why it is taking 9+ hours to send/receive SOL when [it] takes less than 1 second on chain. Is Coinbase insolvent? Where are your proof of Solana reserves?”

Community Reactions

Some users shared screenshots of transactions stuck for hours, with one individual claiming to have lost nearly $1,000 while waiting. Another user vented:

“Literally never using your platform again. Moving to Gemini.”

Crypto venture capitalist Will Clemente dismissed insolvency rumors, suggesting:

“What’s more likely is that they haven’t prioritized infrastructure build-out for Solana, maybe in part because they’re not incentivized to do so with a competing on-chain platform (Base).”

The timing of the issue coincides with Coinbase’s announcement of support for the newly launched Trump (TRUMP) meme coin on the Solana network.

Historical and Network Context

This is not the first time Coinbase has faced operational issues during periods of heavy demand. The exchange has a history of technical difficulties during market volatility.

Additionally, the Solana network itself has suffered frequent outages in recent years, which could further exacerbate withdrawal delays.

SOL Price Takes a Hit

The withdrawal issues come amid a sharp decline in SOL prices, adding to the urgency for users to cash out.

• SOL dropped 13% in hours, falling from an intraday high of $272 to $234 during the Asian trading session on Tuesday morning.
• The token is now down nearly 20% from its all-time high of $293 reached on Jan. 19.

Other Solana-based assets, including meme coins, have also faced steep declines:

• TRUMP: Down more than 20% in 24 hours.
• MELANIA: Slumped by 50% in the same period.
• Other memes like Fartcoin, Dogwifhat, Mog Coin, and Freysa AI are also deep in the red.

The combination of delayed Solana withdrawals and a sharp drop in SOL prices has intensified user dissatisfaction with Coinbase. Whether due to infrastructure shortcomings or network issues, the incident highlights the ongoing challenges for centralized exchanges and blockchain ecosystems during periods of high demand.