Coinbase Suspends Affiliate Program, Leaked Emails Show
Binance US and FTX could benefit if Coinbase gets hurt in Bitcoin's correction
There have been some rather bizarre rumors regarding Coinbase late last week. I’m no expert but these rumors of Coinbase having a liquidity crisis have been refuting by the community as outflows vary in a nervous crypto market.
Business Insider reported that they received emails stating;
“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.”
Coinbase had a shiny coat of paint but since the pandemic my research suggests Binance and FTX were the real winners.
Coinbase announced a suspension of its affiliate program effective July 19. The had to let go of a lot of staff. Coinbase has already rescinded job offers and suspended Coinbase Pro this year. What else could they be forced to do as Bitcoin’s crash in 2022 continues?
As the largest publicly traded crypto exchange in the United States, Coinbase has become something of a household name. But the stock has slipped 80% and that’s just the opening act.
According to CryptoSlate and others:
Coinbase outflows
On July 15, around 50% of stablecoins on Coinbase Pro left the exchange, according to on-chain data from CryptoQuant; the total value came to approximately $248 million. The percentage stablecoin outflow was significantly higher on Coinbase than on other exchanges such as Binance. Only around 1% of stablecoin reserves left Binance over the same period, but the tokens had a similar value at just under $300 million.
The rumors and these developments are not a good sign for Coinbase.
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