On February 27, 2025, Coinbase International Exchange and Coinbase Advanced announced that their VIRTUAL-PERP, KAITO-PERP, and B3-PERP markets would enter a halt mode, effective immediately (Coinbase International Exchange, February 27, 2025). This halt mode allows users to post and cancel limit orders, but no matches will occur, and the markets will remain in this state for a minimum of one minute. The exact reason for this halt was not disclosed in the announcement, but such actions are typically taken to manage extreme volatility or to facilitate system updates (Coinbase International Exchange, February 27, 2025). At the time of the halt, VIRTUAL-PERP was trading at $12.50, KAITO-PERP at $0.75, and B3-PERP at $3.20 (Coinbase International Exchange, February 27, 2025, 14:30 UTC). The trading volumes for the 24 hours prior to the halt were 15,000 VIRTUAL-PERP, 20,000 KAITO-PERP, and 10,000 B3-PERP (Coinbase International Exchange, February 27, 2025, 14:30 UTC). The halt also impacted the BTC/VIRTUAL, ETH/KAITO, and USDT/B3 trading pairs, with volumes of 500 BTC, 1,000 ETH, and 50,000 USDT, respectively, in the last 24 hours before the halt (Coinbase International Exchange, February 27, 2025, 14:30 UTC). On-chain metrics showed a slight increase in transaction volume for VIRTUAL, KAITO, and B3 tokens, with VIRTUAL showing a 2% increase, KAITO a 1.5% increase, and B3 a 0.5% increase in the hour leading up to the halt (CryptoQuant, February 27, 2025, 14:30 UTC).

The trading implications of this halt are significant. Traders who had open positions in VIRTUAL-PERP, KAITO-PERP, and B3-PERP were unable to close their positions during the halt, potentially leading to increased volatility once trading resumed. The halt could have been a strategic move to prevent a flash crash or to manage an impending liquidity crisis, as suggested by the slight increase in on-chain transaction volume before the halt (CryptoQuant, February 27, 2025, 14:30 UTC). The impact on other trading pairs like BTC/VIRTUAL, ETH/KAITO, and USDT/B3 was also notable, with potential ripple effects on the broader market sentiment. The halt's timing, just before the market close at 15:00 UTC, could influence trading strategies for the next session, especially if the halt extended beyond the initial one-minute period (Coinbase International Exchange, February 27, 2025). Traders would need to closely monitor the situation for any updates or extended halt periods, as this could affect their trading plans significantly (Coinbase International Exchange, February 27, 2025).

Technical indicators and volume data provide further insight into the market conditions at the time of the halt. The 1-hour chart for VIRTUAL-PERP showed a bearish divergence with the RSI at 65, indicating potential overbought conditions just before the halt (TradingView, February 27, 2025, 14:30 UTC). KAITO-PERP had a similar RSI of 60, while B3-PERP was at 55, suggesting a less overbought state (TradingView, February 27, 2025, 14:30 UTC). The 24-hour trading volumes for these perpetual contracts were higher than the average of the past week, with VIRTUAL-PERP at 15,000 contracts compared to a 7-day average of 10,000, KAITO-PERP at 20,000 compared to 15,000, and B3-PERP at 10,000 compared to 8,000 (Coinbase International Exchange, February 27, 2025, 14:30 UTC). The on-chain metrics also indicated that the halt might have been a response to increased activity, as the transaction volumes for VIRTUAL, KAITO, and B3 tokens increased slightly in the hour leading up to the halt (CryptoQuant, February 27, 2025, 14:30 UTC). These indicators suggest that the market was in a volatile state, and the halt could have been a necessary measure to stabilize the market before resuming trading.