George Miller
In a now-removed post, Kraken humorously teased Coinbase regarding the delays in Solana transactions, showcasing an amusing image of Coinbase CEO Brian Armstrong. The image illustrated Armstrong with a Solana token, wearing a comical smile, highlighting issues with Coinbase’s recent transaction handling.
Challenges with Solana Transactions at Coinbase
Taking a playful approach to the matter, Kraken tweeted, “Waiting days for a withdrawal? That’s not love, that’s a hostage situation. The choice is yours.” Accompanying this message was an image illustrating two pills—one purple representing Kraken and the other blue, hinting at Coinbase—leading many users to take note of the rival exchange’s struggles.
The transaction delays began in mid-January, aligning with the release of meme coins associated with former President Donald Trump and his spouse Melania. The TRUMP token launched on January 18, followed by the MELANIA token on January 19, which sparked a surge in Solana’s network activity. Consequently, users on Coinbase reported significant delays in processing Solana transactions, with some waiting over 15 hours for completion.
On January 19, Armstrong responded to user frustrations, explaining that the delays were due to a sudden surge in transaction volume on the Solana network. He reassured users that Coinbase was scaling its infrastructure to manage the heightened demand and clarified that the issues were linked to their systems rather than the Solana blockchain itself.
Waiting days for a withdrawal?
That’s not love, that’s a hostage situation.
The choice is yours. pic.twitter.com/ooTgq7kd5U
— Kraken Exchange (@krakenfx) January 21, 2025
Mert Mumtaz, CEO of Helius—a firm focused on Solana infrastructure—backed this assertion, stating that Solana’s blockchain maintained consistent operation without outages during the high traffic period. Over the preceding 90 days, Solana exhibited 100% uptime despite increased transaction activity.
The launch of meme coins notably affected the network’s performance. Moonshot, the platform facilitating the TRUMP token sale, reported an influx of more than 200,000 new users to the Solana network. Even amid congestion, Solana’s stability and efficiency were unaffected, successfully managing the transaction spikes.
Coinbase first recognized the delays on January 17, providing users with updates about the challenges impacting Solana transactions, specifically related to deposits and transfers. However, these delays did not hinder the platform’s capabilities for buying, selling, or fiat withdrawals. As of January 20, some users continued to experience prolonged wait times for their Solana transactions, with the exchange estimating processing durations of roughly 100 minutes.