‘House is fine, but door is jammed’: AWS outage shows crypto’s weak spot

The 15-hour Amazon Web Services outage that halted Coinbase, Robinhood and MetaMask revealed how much of Web3 still relies on centralized servers.

The recent Amazon Web Services (AWS) outage that knocked out major crypto and fintech platforms, including Coinbase, Robinhood, MetaMask and Venmo, has reignited debate over how decentralized Web3 really is.

While blockchains continued producing blocks uninterrupted, millions of users were unable to access wallets, exchanges and decentralized applications (DApps) because their interfaces and application programming interfaces (APIs) were hosted on centralized servers.

“Decentralization has succeeded at the ledger layer but not yet at the infrastructure layer,” Jamie Elkaleh, chief marketing officer at Bitget Wallet, told Cointelegraph. “Real resilience depends on diversifying beyond hyperscalers into community-driven and distributed networks.”

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