Coinbase is Secretly heading Towards Insolvency! A Major Liquidity Crisis on the Horizon
The Coinbase exchange has reportedly shut down its affiliate marketing program in the US perimeter, due to current market conditions. The platform after the 2021 bull run had announced a huge business expansion which was suppressed during the current bear market. The company also laid off more than 1,000 employees recently where crisis alarms were sounding.
According some reportssome shared leaked emails also indicate that Coinbase plans to reintroduce the program in 2023.
“We regret to inform you that Coinbase will be temporarily closing its affiliate program in the United States effective Tuesday, July 19.” This decision was not easy and was not taken lightly. But due to crypto market conditions and the outlook for the remainder of 2022, Coinbase is unable to continue to support incentivized traffic to its platform,” the post states.
The company has already lowered commission rates in June by more than 90%. And on the other hand, the platform would also have increased the transaction fees to 3.99%. Additionally, Coinbase stock prices fell more than 85% from their highs and were also downgraded by Goldman Sachs as the company struggled to hold its own in the bear market.
Moreover, the company also suffered a huge financial loss in the first quarter of 2022 of around $430 million with a decline in trading volume and assets held. In such a case, some analysts believe that it is better remove all assets from the platform.
Currently, no official statement has been released in this regard and as a result, the entire crypto space is desperately waiting for an answer.