Coinbase said it will be closing commissions through its affiliate program for at least the rest of the year.
As it continues to cut spending, Coinbase “Temporarily closedaffiliate marketing program in the United States, according to Business Insider.
Program influencers for gaining new users through social media and websites have been told via email that their commissions will be gone as of tomorrow, according to emails reviewed by Business Insider.
Coinbase’s move comes at a time when many Web3 companies are looking for ways to cut costs amid the collapse in cryptocurrency prices.
“We regret to inform you that Coinbase will be temporarily closing its referral program starting Tuesday, July 19th.‘, may refer to email sent to influencers and website publishers.
Coinbase is one of the three largest cryptocurrency exchanges, according to data from CoinMarketCap, with a daily trading volume of over $2 billion. Founded in 2012, the company has grown over a decade to become an industry leader and something of a household name among crypto companies.
Coinbase just shut down its entire affiliate program. This is a major red flag. I fear that a liquidity crisis is looming.
—Nate O’Brien (@nateobrienn) July 15 2022
The company cited the onset of the crypto winter as a key factor in temporarily halting its affiliate program, as well as deteriorating economic conditions that have crossed so far this year.
“This decision was not easy and not taken lightly, but due to crypto market conditions and expectations for the remainder of 2022, Coinbase cannot continue to support incentivized traffic on its platform.‘Can we read the e-mail.
The exchange reportedly notified the influencers that it plans to relaunch the program sometime in 2023, but did not provide specifics about when. The email stated:We have forged many valuable partnerships through our affiliate platform which we hope to renew in the future.“
Coinbase and the cryptocurrency market
Lowering operating costs has been a theme for Coinbase this year.
It had to lay off 18% of its employees last month (1,100) and cancel job offers with potential employees with whom the company has already made agreements.
However, earlier this month, the San Francisco-based company announced that it would expand further into Europe and set up offices in countries such as France, Italy, Spain and the Netherlands, while expanding its presence in the United Kingdom, Ireland and Germany, according to a Coinbase press release.
The company was the first cryptocurrency exchange to go public in the US, debuting in April of last year.