Coinbase is reported to initiate closure of its affiliate-marketing program in the US. The closure will come into effect from July 19th. The current state of the financial market as well as the crypto market has forced the company to initiate this step.
Coinbase actions are being subjected to analysis and experts are splitting the semantic hair to come to a conclusion. A major crypto influencer Bitboy Crypto is giving an eerie warning which suggests that considering recent history Coinbase could be in trouble of insolvency.
Somewhat similar sentiments were echoed by Mike Dudas, the co-founder of 6th Man Ventures who said that the crypto exchange’s NFT platform is a failure and a dud on arrival.
Coinbase Struggling Amid Crypto Winter
The recent crypto winter has affected the fortunes of almost every entity which is connected with cryptocurrency. The crypto exchange has also been affected by the crypto crash and its share prices have fallen by nearly 85%, from an all-time high of $357 to the current $53.79.
The chronic bearish sentiments have also affected the exchange ratings. Goldman Sachs has reduced the rating. Coinbase values in 2021 was around ATH $75 billion last year. It has shrunk to a mere USD 12.4 billion.
The company has shared details of the first financial quarter results with its share holders and said that the market volatility has adversely affected its prospects. The company suffered a financial loss to the tune of $430 million in the first quarter of 2022. Trading volume and assets on the platform both saw a major decline.
The exchange also intends to cut 18% of its employees as austerity measures.
Binance Getting Better Giving Stiff Competition To Coinbase
The exchange is also getting stiff competitions from its competitors especially centralized exchanges like the FTX and Robinhood . With Binance.US, the US-based branch of the global crypto exchange Binance announcing launch of a zero fees Bitcoin spot trading product Coinbase found a lot of its customers switching to Binance. Notably Coinbase charges a spot trading fee as high as $3.99.