- Coinbase CEO Brian Armstrong is shutting down the platform’ affiliate market program in the U.S.
- Crypto YouTuber Ben Armstrong advises Coinbase investors to “tread lightly.”
- Coinbase is also winding down Coinbase Pro, its professional trading platform.
Are Rumors of Coinbase, the largest US-based crypto exchange going insolvent, true? It’s not clear yet. Here’s what is known.
A Business Insider report reveals that Brian Armstrong, CEO of Coinbase, is closing its affiliate market program in the U.S. In its report, the publication revealed emails from three different creators. As per the emails, Coinbase will temporarily close the program on July 19. Uncertain crypto market conditions have forced the lending platform to take this decision. The company could launch the affiliate platform in 2023. However, it didn’t reveal any exact timeline.
Crypto enthusiast Ben Armstrong, YouTuber and founder of BitBoy, has issued a warning to the investors. Ben said Coinbase could soon face troubling times. Therefore, investors should “tread lightly.”Other crypto observers agree that all this, coupled with the fact that Coinbase is also planning to shut down its professional trading platform, Coinbase Pro, are major red flags. The exchange could be drifting dangerously close to a liquidity crisis.
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Interestingly, other crypto enthusiasts have apparently nodded in agreement. Besides, the fact that Coinbase is closing Coinbase Pro, its professional trading platform, is a major sign too. The exchange might be even leading up to a liquidity crisis.
Coinbase has become irrelevant over the years, losing its market share. Even though it came into existence five years before Binance, the world’s biggest crypto exchange. And seven years before FTX, its major competitor. Its share prices have reached $355, suffering a 83% decline. Due to the recent crypto meltdown and the exchange’s declining revenue, Goldman Sachs has switched its take on Coinbase from “neutral” to a “sell.”Moreover, in June, Coinbase has also performed layoffs (18%) to be secure. Exchange’s NFT marketplace too has proved to be a disaster since its release three months ago. Ben Armstrong concluded that the crypto space will break like never before if Coinbase becomes insolvent
Source: https://www.thecoinrepublic.com/2022/07/17/will-crypto-exchange-coinbase-become-in-solvent/