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There is something wrong with the largest US-based cryptocurrency exchange Coinbase, but it is not yet clear whether this means the company is insolvent, as rumors spread across the crypto world suggest.
Giant red flag: Coinbase ends US partnership program
Coinbase, run by CEO Brian Armstrong, is working to end its affiliate market program in the United States, according to Report by interested in trade.
The post reported emails from three different creators revealing that the leading cryptocurrency exchange will temporarily shut down the program on July 19.
Coinbase allegedly cited current crypto market conditions and a general negative outlook for the rest of this year as the rationale behind this decision. Although it did not provide an exact timeline, the company hopes to relaunch the affiliate platform in 2023.
Crypto YouTuber and BitBoyCrypto Founder Ben Armstrong to caution Investors for whom recent history suggests that there may be a problem with Coinbase fermentation should “take it lightly”.
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Other crypto watchers agree that all this, along with the fact that Coinbase is also planning to shut down its professional trading platform, Coinbase Pro, are major red flags. The stock market could drift dangerously close to a liquidity crunch.
Coinbase scrambling for survival as bear market hits difficulty
Despite launching a full five years before the world’s largest crypto exchange, Binance, and seven years before its rapidly advancing competitor, FTX, Coinbase has lost market share and relevance within the industry.
Although the exchange audience went In 2021 in what has been described as a major milestone for the crypto sector, its stock price has fallen by more than 83% since peaking at around $355. In late June, Goldman Sachs Lowered its recommendation on Coinbase from ‘Neutral’ to ‘Sell’ Due to the collapse of the cryptocurrency and the subsequent decline in revenue.
It is worth noting that Coinbase also laying off 18% of its workforce in June to ensure its survival. To make matters worse, the exchange’s non-fungible tokens (NFT) market has been a major disaster since its launch three months ago.
However, Ben Armstrong concluded that if Coinbase becomes insolvent, it will “break the crypto space like we’ve never seen it before.”
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