Coinbase bankruptcy rumors grow after partnership program suspended

Coinbase’s decision to suspend its affiliate program has sparked rumors that the cryptocurrency exchange may face a liquidity crisis.

The opinion of the crypto community is divided, with some believing that the suspension of its affiliate program could be a sign of the bankruptcy of Coinbase.

CoinGeek media personality Kurt Wuckert Jr said on Twitter that this could indicate a liquidity crunch as the cryptocurrency exchange Coinbase Pro and its Affiliate Program were shut down.

However, Mr. Wuckert is not the only crypto influencer to offer this view. In fact, Nate O’Brien or BitBoy also expressed their opinion on what could constitute an impending liquidity crisis.

BitBoy said in a tweet that a Coinbase bankruptcy would “shatter the crypto space like never before.”

The community defends Coinbase

On the other hand, some argue that current opinions are just food [de l’anglais fear, uncertainty and doubt]. On Twitter, one netizen noted that it is normal for companies to cut spending during a recession.

Kraken’s Dan Heald, for his part, said closing an affiliate program is not a sign of a liquidity crunch.

Others also supported the comments, with NJ Skoberne tweeting that “this comment has nothing to do with liquidity.”

Crypto YouTuber jungleincxrp also said Coinbase has about $6 billion in cash and large cryptocurrency reserves. But he made it clear that he had transferred all of his assets from the stock exchange.

For his part, John Deaton, a lawyer specializing in cryptocurrency, Values That industry executives would “never allow Coinbase to go bankrupt” due to the domino effect such an event would have on the industry.

Finally, Coinbase CEO Brian Armstrong attempted to silence the rumors by saying that the cryptocurrency exchange is well-capitalized and still has a lot of growth to absorb yet. massive spread during 2021.

The recent liquidity crunch within the cryptocurrency sector has already driven three major companies out and caused billions in losses to thousands of consumers.

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