Article Summary

**AWS Outage Exposes Cryptocurrency Exchange Vulnerabilities as Coinbase Suffers Trading Disruptions** Amazon Web Services (AWS) experienced a major outage today, severely impacting Coinbase and highlighting critical centralization risks within the cryptocurrency ecosystem. The cloud infrastructure failure disrupted Coinbase Advanced, the exchange's premium trading platform, for over two hours, preventing users from executing Bitcoin, Ethereum, and other digital asset transactions during volatile market conditions. This incident underscores the blockchain industry's dependency on centralized cloud services, contradicting the decentralized principles underlying cryptocurrency and DeFi protocols. While Bitcoin and other cryptocurrencies operate on distributed networks, major exchanges still rely heavily on traditional infrastructure providers like AWS, creating single points of failure. The outage coincided with Base token declines, potentially amplifying losses for traders unable to access their accounts. This disruption affects millions of cryptocurrency investors and traders who depend on Coinbase for digital asset trading, staking, and portfolio management. The incident reinforces growing concerns about infrastructure centralization in the crypto space, as major exchanges, DeFi platforms, and blockchain applications increasingly depend on a handful of cloud providers, potentially compromising the resilience that makes cryptocurrency attractive to institutional and retail investors.