Business Insider reports that Coinbase is temporarily closing its affiliate marketing program in the United States. According to an email sent to three of the creators, the cryptocurrency exchange will suspend its platform starting on July 19, citing current market conditions and a negative outlook for the crypto industry.
Ben Armstrong, crypto influencer and creator Bitboy Crypto She warned her followers that recent history suggests that Coinbase may be in bankruptcy. Mike Dudas, co-founder of 6th Man Ventures, also described crypto-exchange platform NFT as a failed launch.
Coinbase closed its affiliate program and got rid of CoinBase pro. Recent history may indicate that there may be problems in the future for CB so tread gently.
If Coinbase goes bankrupt, it will break the crypto space like we’ve never seen before.
—Ben Armstrong (@Bitboy_Crypto) 16 July 2022
Coinbase Struggles Amid Crypto Winter
Coinbase suspended its affiliate program due to market conditions. Coinbase’s share price is down nearly 85% from its all-time high of $357 to currently $53.79.
Recently, Goldman Sachs downgraded Coinbase to sell as the platform struggled due to a persistent bear market. Coinbase’s value, which stood at $75 billion last year, has been reduced to just $12.4 billion.
In a letter to its shareholders, the company indicated that its first fiscal quarter results are directly affected by market volatility. It reported a financial loss of $430 million in the first quarter of 2022. Both trading volume and assets on the platform saw a significant decrease.
They also revealed their intention to cut their workforce by 18% as a cost-cutting mechanism.
Coinbase is facing fierce competition from Binance
Coinbase has faced stiff competition from other centralized exchanges such as FTX and Robinhood, but especially from Binance. Binance.US, the US arm of global crypto exchange Binance, recently announced the launch of a zero-fee instant bitcoin exchange product. On the other hand, Coinbase has instant transaction fees that can be as high as $3.99.
“Coinbase Fees…up to 3.99%. https://t.co/ysk3V107gI Fees Up to 0.20%. https://t.co/hSHrrlFFdF Launches No-Fees Bitcoin Trading for All Users.”
Slight correction: exchanges (at least https://t.co/hSHrrlFFdF) don’t profit from spreads. https://t.co/5mLJ1LAewL
– CZ 🔶 Binance (cz_binance) July 15 2022
Binance CEO Changpeng”CZZhao, also took to Twitter to point out the discrepancy in the two companies’ fee structures. He also revealed that Binance.US does not make money from spreads either.
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