Is Crypto Exchange Coinbase the next to go under? Here’s what’s going on ⋆ ZyCrypto

Something is wrong with the largest US-based crypto exchange Coinbase, but it is not yet clear whether this means that the company is insolvent, as rumors circulating throughout the cryptosphere suggest.

Giant Red Flag: Coinbase Ends US Affiliate Program

Coinbase, led by CEO Brian Armstrong, is launching its affiliate marketing program in the United States, according to a report from Business Insider.

The publication reported emails from three different creators revealing that the leading crypto exchange will temporarily close the program on July 19.

Coinbase reportedly cited the current crypto market conditions and the general negative outlook for the rest of this year as the rationale behind this decision. Although it did not provide an exact timeline, the company hopes to relaunch the associated platform in 2023.

Crypto YouTuber and BitBoyCrypto founder Ben Armstrong warn Investors like recent history suggest that there may be issues with brewing for Coinbase, so they should “tread lightly.”

Other crypto observers agree that all of this, combined with the fact that Coinbase also plans to shut down its professional trading platform, Coinbase Pro, is a big red flag. The stock market can operate dangerously close to a liquidity crisis.

Coin base that fights to survive when the bear market hits hard

Despite launching five full years before the world’s largest crypto exchange, Binance, and seven years before its rival, FTX, Coinbase has lost market share and relevance in the industry.

Although the stock exchange was listed in 2021 in what was described as a major milestone for the crypto sector, stock prices have fallen by over 83% since reaching a peak of around $ 355. At the end of June, Goldman Sachs downgraded its recommendation on Coinbase from “neutral” to “sales” due to the cryptocurrency meltdown and the subsequent fall in revenue.

It is worth noting that Coinbase also laid off 18% of the workforce in June to ensure survival. To make matters worse, the exchange’s marketplace for non-fungible tokens (NFT) has been a major disaster since its launch three months ago.

That said, if Coinbase becomes insolvent, Ben Armstrong concluded, it would “break the crypto space we’ve never seen before.”