Coinbase, the leading US cryptocurrency exchange is going through a rather tough time. This further highlights the overall troubled situation of the crypto market to the dismay of users and investors. Rumors are in the air about the exchange’s plans to shut down the affiliate program in the US temporarily. Although times haven’t been rather favorable for crypto recently, this might be an indication that the trouble runs rather deep. In fact, Coinbase has been passing through a rather hard phase in its global operations, and it seems like the bear market has hit it hard. Read along to know more.
The What And Why
Volatility and uncertainty are imperative when it comes to crypto. You never know when the winds will change direction for the better or for the worse. In the case of Coinbase, the winds haven’t been very favorable. Reports that have come out recently are rather troubling. An indication that the US crypto exchange and users are in for quite a ride.
Certain emails leaked to Business Insider state that Coinbase is contemplating shutting down its affiliate program in the US for a temporary period of time. The decision might be in effect from the 19th of July. Claims from the promoters about the company slashing the commission bonus by a margin of 90 percent further add to the veracity of the rumors.
According to Coinbase, ” This has not been an easy decision, nor was it made lightly, but, due to crypto market conditions and the outlook for the remainder of 2022, Coinbase is unable to continue supporting incentivized traffic to its platform.”The program will apparently resume in 2023 according to the reports from the company. However, an exact date is yet to be given.
The report is regarded as a rather dreary red flag by the experts and it would be wise to be on guard. Because as the saying goes, “it is better to be safe than sorry.” Let us flip through a couple of tweets about the reports.
Coinbase grew a ton in 2021 and we're still adjusting to that growth. One of the crazy parts about our industry is that in any given year we might be growing 300-500% or -50%. It makes it incredibly challenging to plan and culturally to absorb so many people during up periods.
— Brian Armstrong (@brian_armstrong) July 12, 2022
Coinbase shut down their affiliate program and are getting rid of CoinBase pro. Recent history would suggest there could be trouble ahead for CB so tread lightly.
If Coinbase were to go insolvent, this would break crypto the crypto space like we have never seen before.
— Bitboy Crypto (@Bitboy_Crypto) July 16, 2022
Dark times are ahead.
Coinbase just shut down their entire affiliate program. This is a MAJOR red flag. I fear that a liquidity crisis is on the horizon.
— Nate O'Brien (@nateobrienn) July 15, 2022
Such a brilliant analogy!
Storing your bitcoin on coinbase is like letting your girl sleepover at a frat house indefinitely.
— Jon (@amicoolyet88) July 16, 2022
Get your coins off of Coinbase. They can’t afford a mere $5 affiliation program and they layed off 18% of their staff… The WORST part is that they updated their terms of use to specify user’s deposits will become their unsecured creditor.
— Toby Cunningham (@sircryptotips) July 16, 2022
No. #Coinbase is not going bankrupt. They have Billions in cash. They're restructuring their affiliate program. Stop the FUD. pic.twitter.com/lRmtOo9qqa
— Grey Jabesi (@greybtc) July 16, 2022
