Coinbase website

Crypto Giant Coinbase has recently dropped its affiliate marketing program, leading to doubts about the exchange’s solvency and strategy.

Coinbase Affiliate Program Closing

Perhaps the most well-known company in the crypto-sphere, Coinbase, has recently made the decision to halt its affiliate program. With this announcement coming amidst the collapse of Celsius and market-wide solvency issues, speculators have become worried about Coinbase’s own solvency.

Coinbase Affiliate Program

First reported by Business Insider, an email from Coinbase to its creators stated “We regret to inform you that Coinbase will be temporarily closing its affiliate program in the United States with an effective date of Tuesday, July 19,” the email went on to say “This is not an easy decision, nor was it taken lightly, but due to crypto market conditions and the outlook for the rest of 2022, Coinbase is unable to continue to support incentive traffic on its platform.”

Naturally, this has caused widespread worry among investors of both crypto and Coinbase itself. With the company generally being considered as one of the safest platforms on the market, any solvency issues could have massive ramifications for the crypto market as a whole.

This sentiment was shared by Ben Armstrong, a popular crypto influencer otherwise known as Bitboy_Crypto.

Coinbase Performance

Since Coinbase ($COIN) first went public on April 14th, 2021, investors have faced continuous disappointment. When the company was first publicly listed on the NASDAQ it opened at a price of $381 but in the months following the stock trended downwards, trading in the $230 region until October ’21. While the stock price was briefly bolstered during late October and November (as a result of the crypto uptrend), it soon followed the rest of the market in a downwards spiral. After hitting highs of $365 in November, the company’s stock price has since fallen significantly with it currently (18.07.22) trading for just $53.75. This marks more than an 85% drop since November.

COIN USD Price Chart

With Coinbase currently operating at the forefront of the crypto industry, any significant issues plaguing the company could be disastrous for the recovery of the wider market. While the chances of Coinbase falling into insolvency seem to be low at current, a recent spell of layoffs does suggest that the company is focusing on reducing costs. Only time will tell if Coinbase survives in the coming months. Although the company seems strong financially, the series of layoffs and the suspension of the Coinbase affiliate program suggests otherwise. Therefore, it’s wise to use caution when it comes to storing assets on the exchange.

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