IF COINBASE GOES INTO BANKRUPTCY “WILL DISRUP THE CRYPTO WORLD AS WE’VE NEVER SEEN IT BEFORE”
The largest US-based cryptocurrency exchange Coinbase has a problem. Still, it’s not yet apparent whether this indicates that the business is bankrupt, as persistent rumors in the industry claim. According to a report by Interest in trade, Coinbase, led by CEO Brian Armstrong, is working to eliminate its affiliate marketing business in the United States.
The program will be temporarily suspended on July 19, according to emails from three different creators, according to the article. According to reports, Coinbase made this decision due to the state of the crypto market. The business intends to relaunch the affiliate platform in 2023; however, it did not give a specific date.
Ben Armstrong, a crypto YouTuber and the founder of BitBoyCrypto, has warned investors: “Take it softly.” Suppose prior experience implies that there may be a problem with Coinbase’s processing.
Other cryptocurrency observers concur that this, together with Coinbase’s intention to discontinue Coinbase Pro, a platform for experienced traders, raises serious concerns. As a result, the stock market may be dangerously close to experiencing a liquidity shortage.
Despite starting operations five full years before the biggest cryptocurrency exchange in the world, Binance, and seven years before its most advanced rival, FTX, Coinbase has lost market share and prominence in the sector.
The exchange audience went in 2021, marking what has been dubbed a significant turning point for the cryptocurrency industry, its stock price has decreased by more than 83 percent since reaching a high of over $355. As a result, Goldman Sachs changed its recommendation for Coinbase from “Neutral” to “Sell” in late June. Due to the loss in revenue caused by the fall of the cryptocurrency.
It’s important to note that Coinbase reduced its employment by 18% in June to preserve its existence. Even worse, since its introduction three months ago, the exchange’s non-fungible tokens (NFT) market has been a complete failure.
Ben Armstrong came to the contrary conclusion that Coinbase’s bankruptcy will “disrupt the crypto world as we’ve never seen it before.”