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Business Insider reported that Coinbase is temporarily shutting down its affiliate-marketing program in the US. According to an email sent to three creators, the crypto exchange will suspend its program from July 19th, citing the current market conditions and the negative outlook for the crypto industry.
Ben Armstrong, a major crypto influencer and creator of Bitboy Crypto has warned his followers that the recent history suggests that Coinbase could be in trouble of insolvency. Mike Dudas, the co-founder of 6th Man Ventures, has also called the crypto exchange’s NFT platform a failed launch and dead on arrival.
Coinbase Struggling Amid Crypto Winter
Coinbase suspended its affiliate programming citing market conditions. Coinbase’s share prices have fallen by nearly 85%, from an all-time high of $357 to the current $53.79.
Recently, Goldman Sachs downgraded Coinbase’s rating to sell as the platform struggled due to the continued bear market. Coinbase’s value, which was at an ATH $75 billion last year, was reduced to a mere USD 12.4 billion.
In a letter to its shareholders, the company reported that its first financial quarter results are directly impacted by market volatility. They reported a financial loss of $430 million in the first quarter of 2022. Trading volume and assets on the platform both saw a significant decline.
They also revealed that they will decrease their workforce by 18% as a cost-cutting mechanism.
Coinbase Faces Stiff Competition From Binance
Coinbase has faced a stiff challenge from other centralized exchanges like FTX and Robinhood, but especially from Binance. Binance.US, the US-based branch of the global crypto exchange Binance, recently announced the launch of a zero fees Bitcoin spot trading product. On the other hand, Coinbase has a spot trading fee as high as $3.99.
Binance CEO, Changpeng “CZ” Zhao also took to Twitter to highlight the disparity in the fee structure of the two companies. He also revealed that Binance.US also does not make money on the spread.
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