Coinbase exchange is reportedly shut down its Affiliated Marketing Program within the perimeter of the USA, mentioning the reason to be the current market conditions. The platform after the 2021 bull run had announced a huge expansion of business which was stripped off during the current bear market. The company also has laid off more than 1000 employees recently where-in the alarms of the crisis were on a ring.
According to some reports, some leaked emails shared also indicate that Coinbase plans to reintroduce the program in 2023.
“We regret to inform you that Coinbase will be temporarily shutting down its Affiliate Program in the United States with an effective date of Tuesday, July 19th’. 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,” says the mail.
The company has already lowered commission rates in June by more than 90%. And on the other hand, the platform would also have increased the transaction fees to 3.99%. Additionally, Coinbase stock prices fell more than 85% from their highs and were also downgraded by Goldman Sachs as the company struggled to hold its own in the bear market.
Additionally, the company also suffered a huge financial loss in Q1 2022 of about $430 million with a drop in the trading volume and assets held. In such a case, some analysts believe it is better to take down all the assets from the platform.
Currently, no official statement has been released in this regard and as a result, the entire crypto space is desperately waiting for an answer.
