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.
“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 the commission rates in June by more than 90%. And on the hand, the platform has also reportedly raised the transaction fees to 3.99%. Moreover, Coinbase’s share prices have plummeted more than 85% from their highs and have also been degraded by Goldman Sachs as the company struggled to sustain itself 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, there is no official statement released in this regard and hence the entire crypto space is desperately waiting for a response.