2 November 2024
Coinbase Could Be in Trouble of Insolvency, Expert Warns
According to a Business Insider report, Coinbase is temporarily shutting down its affiliate-marketing program in the US. As per the email sent to three creators, the crypto exchange will suspend its program from July 19th, citing the current market conditions and the negative outlook for the crypto industry.
Ben Armstrong has warned his followers that the recent history suggests that Coinbase could be in trouble of insolvency. Additionally, the co-founder of 6th Man Ventures, Mike Dudas also called the crypto exchange’s NFT platform a failed launch and dead on arrival.
Coinbase’s decision to suspend affiliate programming was taken amid market conditions. The share prices of Coinbase have fallen by nearly 85%, from an all-time high of $357 to the current $53.79.
Goldman Sachs also downgraded Coinbase’s rating to sell as the platform struggled due to the continued bear market. Last year, Coinbase’s value was at an ATH $75 billion and later reduced to a mere USD 12.4 billion.
In a letter to its shareholders, Coinbase reported that its first financial quarter results are directly impacted by market volatility. They reported a financial loss of $430 million in the first quarter of 2022. Trading volume and assets on the platform both saw a significant decline.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.
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